Nvidia achieved a significant milestone as its market value surpassed $2 trillion, following impressive earnings that fueled enthusiasm around artificial intelligence.
However, the chipmaker’s stock later saw a slight decline, causing its market cap to dip below the $2 trillion mark by the close of the market.
The company experienced an unprecedented increase in market cap a week earlier, adding $273 billion, the largest single-day jump ever recorded for a company.
This surge followed Nvidia’s report of a remarkable 769% annual increase in fourth-quarter profit and a 580% jump in full-year profits compared to the previous year, exceeding analysts’ expectations.
Joining an elite group that includes Apple and Microsoft, Nvidia is only one of a few companies to achieve a $2 trillion market cap.
Earlier this month, Nvidia surpassed Amazon and Alphabet in market value, becoming the third-largest company on Wall Street, trailing only Microsoft and Apple.
Nvidia’s rapid growth, culminating in its $1 trillion market cap in 2023, has been fueled by the fervor surrounding artificial intelligence, which has been a driving force behind the recent bull market.
The company’s dominance in producing processors for AI systems, particularly in generative AI technology, has solidified its position as a leading player in the AI space.
As Nvidia continues to thrive as a symbol of AI innovation on Wall Street, its success underscores the importance of its contributions to the advancement of artificial intelligence technology.
Source-CNN
