Nvidia Corp., the popular chip maker, fell short of achieving a $2 trillion valuation in the stock market, but came close to becoming one of only three U.S. companies to reach this milestone. Despite an initial surge of 4.9% in its stock price during Friday’s session, Nvidia’s shares later pulled back and finished at $788.17, up only 0.4%. This resulted in a closing market capitalization of $1.98 trillion, just shy of the coveted $2 trillion mark.
Had Nvidia’s stock price closed above $800, it would have achieved a $2 trillion valuation. The company first reached a market value of $1 trillion on June 13, making it the quickest to ascend between these two milestones if it were to achieve the feat within the next year. According to Dow Jones Market Data, Friday marked the 175th trading day since Nvidia reached the $1 trillion mark. In comparison, Apple Inc. took 516 trading days and Microsoft Corp. took 543 trading days to reach a $2 trillion market valuation from $1 trillion.
Over the past year, Nvidia’s shares have surged by an impressive 233%, largely driven by the high demand for its graphics-processing units (GPUs). These GPUs have become essential components for companies building artificial intelligence applications. Nvidia’s latest earnings report indicated that the robust demand for GPUs is expected to continue, resulting in a significant increase of $277 billion in the company’s market capitalization during Thursday’s session. This one-day valuation gain was the largest ever recorded for any U.S. company.
The future looks promising for Nvidia as it continues to dominate the GPU market and benefit from the growing interest in artificial intelligence. Investors and analysts are optimistic about its potential to deliver substantial returns in the coming months. In fact, there are 20 AI stocks that are expected to rise as much as 44%, and Nvidia is among them.
Although Nvidia fell just short of achieving a $2 trillion valuation, its remarkable journey from a $1 trillion market value to its current position demonstrates the company’s strength and resilience. Its innovative products and strong market position make it a top contender in the technology industry. As Nvidia continues to ride the wave of AI and emerging technologies, it will be interesting to see how the company’s valuation evolves in the future.
