Following its highly-anticipated Q4 earnings report this week, California-based tech company Nvidia ($NVDA) has surpassed $2 trillion in market capitalization. Indeed, the chipmaker has seen its stock increase a remarkable 59% in 2024. Its rise has been due in large part to the AI boom within the tech sector over the last two years.
The ascension is yet another landmark moment for the semiconductor firm, as its growth has continued. Indeed, its shares increased a notable 2.7% in premarket trading on Friday. Moreover, the value had closed at a $1.96 trillion valuation the previous day.
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Nvidia Earnings Catapult Value Past $2 Trillion
Throughout the last year, the tech sector has seen a massive increase in AI interest. Set off by the meteoric rise of OpenAI’s ChatGPT, the industry saw a plethora of companies pivot toward generative AI products. Amazon, Google, and Elon Musk’s X were some of the biggest names.
Yet, one of the biggest beneficiaries of the AI boom has been Nvidia, which has officially surpassed $2 trillion in market capitalization. Indeed, the surge in value was a byproduct of the firm’s Q4 earnings report that arrived earlier this week. The market value ascension occurred after the chipmaker experienced the largest single-day increase in market value ever recorded.
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For context, the company’s $277 billion single-day increase was more than the entire $266 billion value of Coca-Cola. That development was a result of the company’s more than 230% increase in revenue, which surpassed lofty expectations from the coveted January earnings report.
Throughout the year, the value of Nvidia stock has increased by almost 60%. Moreover, it is currently ranked as the fourth-largest stock for the year. Amid the health of the sector and the company, the value is expected to continue to rise. Just how much remains to be seen.