Nvidia races to $2 trillion mark as AI mania sparks Wall St tech rally


Nvidia galloped to $2 trillion market value on Thursday after the bellwether for AI chip demand once again exceeded Wall Street's sky-high expectations, re-igniting a global rally in tech stocks.

The chipmaker returned as the third most valuable U.S. company as its shares jumped 15% to a record high of $780.85. If the gains hold, Nvidia will add about $260 billion to its market capitalization.

The rally in the top performing S&P 500 stock also lifted its counterparts in the chip sector, sending the benchmark index, Europe's STOXX 600 and Japan's Nikkei share average to record highs.

The stock that has jumped nearly 57% this year has emerged as the centerpiece of Wall Street's gain as it accounted for more than a quarter of the S&P 500's gains in 2024, making its quarterly results crucial for equity investors.

"It's giving insight into just how dominant they are in an incredibly high growth space," said Paul Marino, chief revenue officer at GraniteShares ETFs.

"Everything that they touch in the semiconductor area from robotics, crypto, AI, gaming to autonomous vehicles.. they are producing the best chips and people seem to be unfazed by the high valuations."

If Nvidia hits the $2 trillion mark, it would achieve the milestone at the fastest pace ever by adding $1 trillion in just about nine months.

Soaring demand for Nvidia's chips used by companies rushing to upgrade their AI offerings helped the Silicon Valley firm forecast a whopping 233% growth in first-quarter revenue, above market expectations of a 208% rise.

Gains in Nvidia lifted aspiring AI competitor Advanced Micro Devices 10%, while Super Micro Computer surged 20% and Arm Holdings rose 9.5%. The Philadelphia chip index added nearly 4.4%.