After Dell Technologies (DELL.N)'s positive report revived Wall Street's AI-fueled rally, Nvidia's (NVDA.O) stock market value closed above $2 trillion for the first time on Friday.
Nvidia's shares rose 4% after Dell, which sells high-end servers using Nvidia chips, provided an optimistic prediction late Thursday, citing a rise in AI-optimized server sales.
After rising 38% to a record high, Dell's shares rose 32%. Its market valuation rose to $2.06 trillion on Friday, putting it Wall Street's third most valuable business after Microsoft and Apple, at $3.09 trillion and $2.77 trillion, respectively.
Super Micro Computer (SMCI.O), another Nvidia-powered server maker, rose 4.5%. AI-exposed chipmakers Broadcom (AVGO.O), Marvell Technology (MRVL.O), and Advanced Micro Devices (AMD.O) rose to record highs.
The PHLX chip index (.SOX), opens new tab, rose 4.3% to a record high, extending its 2024 gain to 18%. Nvidia controls about 80% of the high-end AI chip market, with ChatGPT creator OpenAI, Microsoft (MSFT.O), Alphabet (GOOGL.O), and Meta Platforms (META.O) buying up tight supplies to compete in the fast-growing generative AI sector.
The business replaced Tesla (TSLA.O) as Wall Street's most traded stock by value daily. Nvidia's shares traded $36 billion during the past 30 sessions, compared to Tesla's $21 billion everyday.
After forecasting a threefold quarterly revenue increase, the Santa Clara, California-based company's stock market value rose $277 billion in one session on Feb. 23, a Wall Street record. After tripling last year, Nvidia's stock is up 66% in 2024. Its stock market valuation surpassed Amazon (AMZN.O) and Alphabet last month.
Nvidia's stock market valuation reached $2 trillion for the first time a week ago before falling. Saudi Aramco (2223.SE), opens new tab has a $2.045 trillion market valuation, yet LSEG data shows that over 90% of its shares are held by the Saudi government and less than 2% are traded by investors.
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