On Friday, Nvidia achieved a market value of $2 trillion, driven by an insatiable demand for its chips, positioning the Silicon Valley company as a trailblazer in the generative artificial intelligence (AI) boom. This milestone followed a robust revenue forecast from the chip designer on Thursday, leading to a remarkable one-day gain of $277 billion in market value – the largest single-day increase on record for Wall Street.
Analysts have compared Nvidia to the companies that supplied picks and shovels during the gold rush of the 1800s due to the company’s explosive growth over the past year. Nvidia’s chips are utilized by virtually all major generative AI players, including OpenAI, the creator of chatGPT, and Google. This widespread adoption has propelled the company’s market value from $1 trillion to $2 trillion in approximately nine months – the fastest pace among U.S. companies and achieved in less than half the time it took tech giants Apple and Microsoft.
