Nvidia, the Silicon Valley-based artificial intelligence chip company, has reached a significant milestone with a market valuation of $2 trillion (£1.58 trillion), marking a remarkable ascent for the chip manufacturer into the ranks of the world’s most valuable companies.
Shares of the company surged over 4% in Friday morning trading before slightly retracting. The gains come on the heels of the company’s stellar earnings report earlier in the week.
Nvidia is capitalizing on advancements in artificial intelligence (AI), which have driven demand for its chips. The company’s revenue doubled last year to over $60 billion, with CEO Jensen Huang telling investors this week that demand is “accelerating” globally.
Having been valued at $1 trillion less than a year ago, Nvidia now stands as the fourth most valuable publicly traded company in the world, trailing behind Microsoft, Apple, and Saudi Aramco.
After shares pulled back from their early Friday highs, the company’s market capitalization ended the day just below the $2 trillion mark.
Founded in 1993, Nvidia initially gained recognition for manufacturing graphics processing chips, particularly for computer gaming. Long before the AI revolution, it began integrating features into its chips that purportedly aid in machine learning, investments that have paid off in market share.
Today, Nvidia is regarded as a key company to watch as AI-driven technology rapidly proliferates across the business landscape.x,x,x,x
The company’s stock price has tripled in the past 12 months, rising from under $240 per share to nearly $800 in midday trading on Friday.
On Thursday, following its earnings report, buyers drove its value up by $277 billion, marking the largest single-day increase in Wall Street history.
The report has also fueled a broader market rally, seemingly convincing investors that, as Hargreaves Lansdown’s Derren Nathan put it, the AI boom is “meeting expectations.”
“It’s being used in automotive for design, it’s being used in telecommunications for network planning, it’s being used in conventional businesses to glean insights from data they couldn’t access before,” said American tech analyst Bob O’Donnell to the BBC earlier this week. “It’s now really starting to affect all kinds of companies, not just specialized tech firms, and that’s a real turning point for the industry.”
Translated into English:
Nvidia, a $2 Trillion Valuation: A Milestone in AI Chip Manufacturing
Nvidia, the California-based AI chip manufacturing giant, has achieved a remarkable feat, crossing the $2 trillion valuation mark, signaling its rapid ascent among the world’s most valuable corporations.
In early trading on Friday, Nvidia’s stock surged by over 4%, driven by the company’s stellar earnings report earlier in the week. The company’s growth is fueled by the increasing demand for its chips, particularly in the field of artificial intelligence (AI), which saw its revenue double to over $60 billion last year.
This surge in valuation places Nvidia as the fourth most valuable publicly traded company globally, trailing behind tech giants like Microsoft and Apple. Despite a slight pullback in stock prices later in the day, Nvidia’s market capitalization hovered just below the $2 trillion milestone.
Established in 1993, Nvidia initially gained prominence for its graphics processing chips, predominantly used in computer gaming. However, the company strategically pivoted by integrating features into its chips to support machine learning, a move that has significantly expanded its market share.
Today, Nvidia is recognized as a frontrunner in the AI-driven technology landscape, with its stock price tripling over the past year, reaching nearly $800 per share in midday trading on Friday.
Following its recent earnings report, Nvidia witnessed a historic single-day increase in its stock value, surging by $277 billion. This surge not only underscores Nvidia’s growth trajectory but also contributes to a broader market rally, signifying investors’ confidence in the AI industry’s potential.
According to industry experts, Nvidia’s impact extends beyond specialized tech firms, with its AI technology being increasingly adopted across various sectors, including automotive, telecommunications, and conventional businesses, marking a pivotal moment for the industry’s evolution.
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