Artificial Intelligence (AI) giant and chip maker NVIDIA has given the United States stock market observers a lot to talk about as it hit more than $2 trillion in market capitalization. 

NVIDIA Adds $277B to its Market Cap

Owing to its bumper earnings, NVIDIA played a significant role in the record high that the American stock market attained on February 22. Far beyond the expectation of several analysts, shares in NVIDIA closed 16.4% higher on Thursday. This brought with it the addition of $277 billion to NVIDIA’s market cap. 

Markedly, this was after the quarterly results and new forecasts it had published the previous day. Overall, the company recorded a total of $740 billion as its profit for the 2023 Fiscal year. Looking at these figures, it is apparent that the chipmaker has surpassed the likes of Amazon as well as Google’s parent company Alphabet whose market caps are currently pegged at $1.82 trillion and $1.8 trillion respectively.

Noteworthy, NVIDIA is now the third-most valuable US-listed company after Microsoft and Apple. It is worth noting that this valuation are not static and might either soar or drop over time. 

Ripple Effect of The Earnings Boost

The move ended up boosting the shares of other technology-based companies as well. The S&P 500 which is always regarded as a benchmark for Wall Street saw a jump of up to 105.23 points, equivalent to 2.1%. This caused the Index to close at 5,087.03, a level that was last seen in January 2023. 

Also, the Dow Jones industrial average closed above $39,000 after recording a profit of 456.87 points (1.2%). 

This brought the shares to $39,069.11 and this is the first time that Dow Jones has ever reached this status. However, it is also its 13th high since the beginning of January. Nasdaq Composite hit its record as the technology-heavy Index equally went up by 3% to 16,041.62, and this was its second-highest close.

The drivers behind NVIDIA’s earnings include its chip-making industry which was recently introduced to China. Similarly, the firm also launched “Chat with RTX”, a chatbot that is believed to be strong competition for OpenAI’s ChatGPT.

The growth of NVIDIA has also contributed to a jump in the price of other AI tokens like Render (RNDR) and SingularityNET (AGIX).

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Filed under: News - @ January 1, 1970 12:00 am