Chip Giant Nvidia Nears Trillion-Dollar Status on AI Bet
Nvidia Corp. surged 24 percent on Thursday in one of the largest one-day gains in value for a U.S. stock, after its stellar revenue forecast showed that Wall Street has yet to price in the game-changing potential of AI.
The surge more than doubled the stock’s value for this year and increased the chip designer’s market capitalization by about $184 billion to nearly $939 billion.
That makes Nvidia twice as big as the second-largest chip firm, Taiwan’s TSMC. In the United States, it trails only trillion-dollar-value companies Apple Inc., Alphabet Inc., Microsoft Corp., and Amazon.com Inc.
The rosy earnings also sparked a rally in the chip sector and for AI-focused firms, lifting stock markets from Japan to Europe. In the United States, Big Tech companies other than Amazon closed between 0.6 percent and 3.8 percent higher, while Advanced Micro Devices Inc settled 11 percent higher….