The month of March began with a bumper for Nvidia. The company’s stock market value touched over $2 trillion. According to reports, Nvidia’s stock added 4 per cent after Dell Technologies gave an upbeat forecast on the latter on Thursday. This pointed towards a surge in orders for AI-optimised servers.
Post this forecast, the shares of Dell Technologies soared to 38 per cent ending the session with a 32 per cent. This rally put Nvidia’s market capitalisation at $2.06 trillion. This made the company Wall Street’s third most valuable company after Microsoft and Apple, at $3.09 trillion and $2.77 trillion, respectively. Another company that sells servers made with Nvidia’s chips, Super Micro Computer, saw a jump of 4/5 per cent.
The company has recently become Wall Street’s most traded stock by value, day to day, replacing Tesla. Investors exchanged $36bn worth of Nvidia’s stock on average over the past 30 sessions, compared to $21bn a day for Tesla.
Trading in Nvidia on Friday reached $38bn worth of shares.
There were other chipmakers that recorded highs – Marvell Technology and Broadcom, each saw an 8 per cent increase. Advanced Micro Devices AMD.O climber by over 5 per cent. The PHLX chip index rallied 4.3 per cent to its own record high, lifting its 2024 gain to 18 per cent.
Currently Nvidia controls over 80 per cent of the high-end AI chip market with customers including ChatGPT, Microsoft, Meta Platforms, and Alphabet. All these snapping up tight supplies of its components to compete in the fast-emerging generative AI sector. Currently Nvidia’s stock has shot to a 66 per cent after more than tripling last year. Last month, its stock market value overtook Amazon  and Alphabet.
