Nvidia closes with $2 trillion valuation as Dell stokes AI rally
Reuters
Published Mar 01, 2024 02:28PM ET
Updated Mar 01, 2024 04:37PM ET
By Noel Randewich
(Reuters) -Nvidia's stock market value closed above $2 trillion for the first time on Friday after an upbeat report from Dell Technologies (NYSE:DELL) reignited Wall Street's AI-fueled rally.
Nvidia (NASDAQ:NVDA)'s stock added 4% after Dell, which sells high-end servers made with Nvidia's processors, gave an upbeat forecast late on Thursday, pointing to a surge in orders for its AI-optimized servers.
Dell's shares soared as much as 38% to a record high before ending the session with a 32% gain.
Friday's rally put Nvidia's market capitalization at $2.06 trillion, making it Wall Street's third most valuable company behind Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), at $3.09 trillion and $2.77 trillion, respectively.
Super Micro Computer (NASDAQ:SMCI), another company that sells servers made with Nvidia's chips, jumped 4.5%.
Other chipmakers exposed to AI rallied to record highs, with Broadcom (NASDAQ:AVGO) and Marvell (NASDAQ:MRVL) Technology each up about 8%, while Advanced Micro Devices (NASDAQ:AMD) climbed over 5%.
The PHLX chip index rallied 4.3% to its own record high, lifting its 2024 gain to 18%.
Nvidia controls about 80% of the high-end AI chip market, with customers including ChatGPT creator OpenAI, Microsoft, Alphabet (NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META) snapping up tight supplies of its components to compete in the fast-emerging generative AI sector.
The company has recently become Wall Street's most traded stock by value, day to day, replacing Tesla (NASDAQ:TSLA). Investors exchanged $36 billion worth of Nvidia's stock on average over the past 30 sessions, compared to $21 billion a day for Tesla.
Trading in Nvidia on Friday reached $38 billion worth of shares.
On Feb. 23, the Santa Clara, California-based company added $277 billion in stock market value in just one session, a Wall Street record, after it forecast a roughly threefold surge in quarterly revenue.
Nvidia's stock has now risen 66% in 2024 after more than tripling last year. Last month, its stock market value overtook Amazon (NASDAQ:AMZN) and Alphabet.
A week ago, Nvidia's stock market value edged above $2 trillion for the first time before receding by the end of the session.
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Written By: Reuters
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