Nvidia, The Artificial Intelligence Chip Company, Holds A Valuation Of $2 Trillion. Nvidia has reached a market valuation of $2 trillion (£1.58 trillion), marking a significant milestone in the chipmaker’s swift rise among the world’s most valuable companies.
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4% Rise In Friday’s Morning Trade
Shares in the Silicon Valley company saw a more than 4% rise in Friday’s morning trade, later retracing slightly. These gains follow a substantial surge prompted by the company’s stellar earnings report earlier in the week. Nvidia is capitalizing on the increasing demand for its chips driven by advancements in artificial intelligence (AI).
The firm’s turnover soared to over $60 billion last year, more than doubling its previous figures. During an investor briefing this week, CEO Jensen Huang highlighted that demand for Nvidia’s products was “surging” globally. From being valued at $1 trillion less than a year ago, Nvidia now stands as the world’s fourth most valuable publicly traded company, trailing behind Microsoft, Apple, and Saudi Aramco.
Established in 1993 with a focus on graphics processing chips, Nvidia adapted early on by incorporating features into its chips aimed at enhancing machine learning capabilities. This strategic move significantly contributed to the company’s increased market share. Nvidia is currently recognized as a crucial player in assessing the widespread adoption of AI-powered technology in the business landscape.
$277 Billion In Its Market Value
Over the past 12 months, the price of the company’s shares has more than tripled, rising from below $240 per share to nearly $800 in mid-day trade on Friday. Following its earnings report on Thursday, Nvidia witnessed a staggering increase of $277 billion in its market value, marking Wall Street’s largest one-day gain in history. This impressive performance has not only bolstered Nvidia but has also contributed to a broader market rally, convincing investors that the AI boom is indeed “living up to the hype,” as noted by Derren Nathan of Hargreaves Lansdown.
The transformative impact of AI is increasingly evident across diverse industries, as Bob O’Donnell, a technology analyst based in the US, emphasized. The technology is now being utilized in automotive design, telecommunications network planning, and mainstream companies seeking novel insights into data. This broadening application marks a significant tipping point for the industry, extending beyond specialized tech companies.
