Nvidia Up Over Record $277 Billion Market Cap After Earnings Call

Nvidia (NVDA.O) experienced an unprecedented surge on Thursday, adding a staggering $277 billion to its stock market value, marking Wall Street's largest single-day gain in history. This surge was ignited by the heavyweight chipmaker's quarterly report, which surpassed expectations, reigniting a rally fueled by optimism surrounding artificial intelligence.

Following the quarterly report released late on Wednesday, Nvidia's stock skyrocketed by 16.4%, reaching a record high closing price of $785.38. This surge propelled its market capitalization to $1.96 trillion, driven by robust demand for its specialized chips used in AI computing, surpassing analysts' already lofty projections. The company, headquartered in Santa Clara, California, fueled a global surge in technology stocks linked to AI, driving indices such as the S&P 500 (.SPX), Europe's STOXX 600 (.STOXX), and Japan's Nikkei share average (.N225) to record highs.

Traders transacted a remarkable $65 billion worth of Nvidia's shares on Thursday, accounting for nearly a fifth of all trading in S&P 500 stocks. Nvidia's historic one-day increase in market value easily surpassed the previous record set by Meta Platforms (META.O) on February 2, with a $196 billion gain after the announcement of its first dividend and strong financial results.
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Nvidia's surge propelled it to become the third most valuable company in the U.S. stock market, surpassing tech giants like Amazon.com (AMZN.O) and Alphabet (GOOGL.O) after competing closely with them in recent weeks. Microsoft (MSFT.O) and Apple (AAPL.O) remain the top two most valuable companies on Wall Street, valued at $3.06 trillion and $2.85 trillion, respectively.