Nvidia joined an exclusive club on Friday morning when its market value topped $2 trillion, just days after the chipmaker reported gangbusters earnings that once again swept Wall Street into an artificial intelligence-induced fervor.
But the chipmaker’s stock pared some of its gains later in the day, leading its value to edge below the $2 trillion threshold by the market’s close.
Nvidia added a staggering $273 billion to its market cap on Thursday, the biggest single-day jump of any company on record, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. That came after the company on Wednesday evening reported a 769% annual gain in fourth-quarter profit and a 580% jump in full-year profits from the year earlier, blowing past analyst’s expectations.
Only a handful of companies have ever hit the $2 trillion milestone, including Apple and Microsoft.
Nvidia’s latest achievement comes after the company earlier this month surpassed Amazon and Alphabet in market value and become the third-largest company on Wall Street behind Microsoft and Apple.
The company hit a $1 trillion market cap in 2023, about 24 years after going public.
Its meteoric growth over the past year came as artificial intelligence mania consumed Wall Street and helped power a ferocious bull market. The S&P 500 and Dow Jones Industrial Average indexes closed at record highs on Thursday, after Nvidia’s eye-popping earnings fueled a broad rally.
Nvidia has emerged the poster child of AI on Wall Street, in part because it is crucial to the burgeoning AI space. The American chipmaker is unmatched in producing processors that power artificial intelligence systems, including for generative AI, the buzzy new technology that can create text, images and other media.
— CNN’s Clare Duffy contributed to this report.
