California-based tech company Nvidia has been on the rise in the past week. Just today, Nvidia added $277 billion to its current market value, signaling the largest single-day gain in history. The company’s influence and contributions to the growing AI industry are at the forefront of the reasons behind this surge.
The Nvidia company earned $22.1 billion in revenue in the fourth quarter of 2023, a nearly 250% increase for the company. Nvidia is one of if not the leading chip development companies, which is crucial for developing AI technology.
Specifically, its graphic processors were necessary as servers for these AI models. As a result, the value of its stock has skyrocketed. Since 2022, the value of Nvidia stock has surpassed a market cap value of more than $1.7 trillion.
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The company’s stock soared 16.4% to close at $785.38 on Thursday. Furthermore, Traders exchanged $65 billion worth of Nvidia’s shares on Thursday, accounting for almost a fifth of all trading in S&P 500 stocks. The surge also made Nvidia the U.S. stock market’s third-most valuable company, pulling ahead of Google and Amazon on the list. Nvidia now only sits behind Apple and Microsoft as the richest companies on the market.