Nvidia, listed as NVDA.O, reached a remarkable milestone on Friday by surpassing a market value of $2 trillion. This achievement is fueled by the immense demand for its chips, which have positioned the Silicon Valley company as a leader in the generative artificial intelligence sector.
The surge follows a substantial revenue forecast, propelling Nvidia’s market value by $277 billion on Thursday—marking Wall Street’s largest single-day gain on record. Analysts compare Nvidia’s rapid growth to the providers of picks and shovels during the 1800s gold rush, as its chips are utilized by nearly all major players in generative AI, including OpenAI, the creators of ChatGPT, and Google.
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Within approximately nine months, Nvidia’s market value escalated from $1 trillion to $2 trillion, making it the fastest-growing U.S. company to achieve this milestone, and accomplishing it in less than half the time it took tech giants Apple and Microsoft.
“For AI companies today – the leaders of the sector – what’s going to be binding for them is not going to be demand. It’s just going to be their capacity to answer the surging demand,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
