Shares of the Silicon Valley company saw a significant rise of over 4% during Friday’s morning trading before easing back a bit.
This increase came after the company’s impressive earnings report earlier in the week, driven by the growing demand for its chips, particularly in the field of artificial intelligence (AI).
With a turnover exceeding $60 billion last year, Nvidia’s CEO, Jensen Huang, emphasized the substantial global demand for their products, describing it as “surging.”
Once valued at $1 trillion less than a year ago, Nvidia currently ranks as the world’s fourth most valuable publicly traded company, trailing behind Microsoft, Apple, and Saudi Aramco.
Despite a slight dip from the morning highs, Nvidia’s market capitalization ended the day just below the $2 trillion mark.
Established in 1993, Nvidia initially gained recognition for its graphics processing chips, especially in the gaming industry. Over time, the company expanded its chip functionalities to cater to the needs of machine learning, a strategic move that has strengthened its market position.
Nvidia’s stock price has experienced remarkable growth over the past year, more than tripling from under $240 per share to nearly $800 in mid-day trading on Friday.
Following the release of its earnings report, Nvidia saw a substantial one-day increase in value, amounting to $277 billion, marking a historic event on Wall Street.
The positive earnings report not only boosted Nvidia’s stock but also contributed to a broader market rally. Investors appear convinced that the burgeoning AI industry is living up to its potential.
AI technology is now being utilized across various sectors, including automotive, telecommunications, and mainstream companies, enabling them to derive valuable insights from data like never before. This widespread adoption signals a significant turning point for the industry as a whole.
