- Nvidia stock soared to a $2 trillion valuation after reporting blockbuster earnings, joining an exclusive club of mega-cap companies like Apple and Microsoft.
- Nvidia added a record $273 billion to its market cap in a single day following earnings that blew past analyst forecasts with 769% annual profit growth.
- Nvidia’s meteoric rise over the past year coincides with the AI craze on Wall Street as the chipmaker plays a crucial role powering AI systems.
Nvidia has joined an exclusive club. The chipmaker’s market value topped $2 trillion on Friday morning, just days after reporting blockbuster earnings that swept Wall Street into an artificial intelligence frenzy.
Massive Single-Day Jump
The company added a staggering $273 billion to its market cap on Thursday, the biggest single day increase ever for a company, according to Howard Silverblatt of S&P Dow Jones Indices. This came after Nvidia on Wednesday reported a 769% annual profit gain for the fourth quarter and a 580% full-year profit leap, blowing past analysts’ forecasts.
Hits Rare $2 Trillion Milestone
Only a handful of companies, including Apple and Microsoft, have ever reached the $2 trillion valuation milestone. Nvidia’s achievement comes after it recently surpassed Amazon and Alphabet to become the third-largest company on Wall Street behind Microsoft and Apple.
Meteoric Growth Over Past Year
Nvidia hit a $1 trillion market cap just last year, about 24 years after going public. Its skyrocketing growth over the past year coincided with the artificial intelligence craze on Wall Street that helped power a raging bull market. The S&P 500 and Dow closed at new highs on Thursday after Nvidia’s stunning earnings fueled a broad rally.
Crucial Role in AI Space
Nvidia has emerged as the poster child for AI on Wall Street because it plays a vital role in the burgeoning field. The American chipmaker dominates in making the processors that run artificial intelligence systems, including the hot new generative AI tech that can create text, images and other media.
