© Reuters. FILE PHOTO: A NVIDIA logo is shown at SIGGRAPH 2017 in Los Angeles, California, U.S. July 31, 2017. REUTERS/Mike Blake/File Photo
By Noel Randewich
(Reuters) – Nvidia (NASDAQ:)’s stock market value was on track to close above $2 trillion for the first time on Friday after an upbeat report from Dell Technologies (NYSE:) reignited Wall Street’s AI-fueled rally.
Nvidia’s stock added 3.5% after Dell, which sells high-end servers made with Nvidia’s processors, gave an upbeat forecast late on Thursday, pointing to a surge in orders for its AI-optimized servers.
Dell’s shares soared as much as 38% to a record high. They were last up 30%.
Friday’s gains put Nvidia’s market capitalization at $2.05 trillion, making it Wall Street’s third most valuable company behind Microsoft (NASDAQ:) and Apple (NASDAQ:) at $3.07 trillion and $2.75 trillion, respectively.
Super Micro Computer (NASDAQ:), another company that sells servers made with Nvidia’s chips, jumped 6%.
Other chipmakers exposed to AI rallied to record highs, with Broadcom (NASDAQ:) and Marvell (NASDAQ:) Technology each up about 8%, while Advanced Micro Devices (NASDAQ:) climbed nearly 5%.
The PHLX chip index rallied 4.5% to its own record high, lifting its 2024 gain to 18%.
Nvidia controls about 80% of the high-end AI chip market, with customers including ChatGPT creator OpenAI, Microsoft, Alphabet (NASDAQ:) and Meta Platforms (NASDAQ:) snapping up tight supplies of its components to compete in the fast-emerging generative AI sector.
The company has recently become Wall Street’s most traded stock by value, day to day, replacing Tesla (NASDAQ:). Investors exchanged $36 billion worth of Nvidia’s stock on average over the past 30 sessions, compared to $21 billion a day for Tesla.
Trading in Nvidia on Friday afternoon reached $28 billion worth of shares.
On Feb. 23, the Santa Clara, California-based company added $277 billion in stock market value in just one session, a Wall Street record, after it forecast a roughly threefold surge in quarterly revenue.
Nvidia’s stock has now risen 65% in 2024 after more than tripling last year. Last month, its stock market value overtook Amazon (NASDAQ:) and Alphabet.
A week ago, Nvidia’s stock market value edged above $2 trillion for the first time before receding by the end of the session.
Saudi Aramco (TADAWUL:) has a $2.045 trillion market capitalization, although over 90% of it is closely held by the government of Saudi Arabia and less than 2% of its shares are available for trading by investors, according to LSEG data.
