+4.00%
Nvidia reached over $2 trillion value on the stock market for the first time on Friday.
This happened because Dell Technologies shared a strong outlook and expects more people to buy its servers that use Nvidia's technology for artificial intelligence.
Nvidia's stock added 4% after Dell, which sells high-end servers of 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 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, 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 Technology each up about 8%, while Advanced Micro Devices (NASDAQ:AMD) climbed over 5%.
The PHLX chip index rallied 4.3% to 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 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, 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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
