Chip group Nvidia increased its value by more than $200 billion on the New York Stock Exchange on Thursday. Investors are reacting enthusiastically to the results of the world leader in chips used in artificial intelligence. In monetary terms, this is the biggest price jump ever.
The stock rose about 14 percent after the opening bell on Wall Street, raising its market value to more than $1.9 trillion. Nvidia was able to recoup price losses earlier this week. Initially, there was doubt whether stock market darling Nvidia could meet investors' high expectations. However, the company once again achieved record results last quarter and performed much better than expected.
According to CEO Jensen Huang, Nvidia continues to benefit from high demand for faster computers and AI applications. Nvidia saw a 22 percent increase in sales last quarter compared to the previous three months, when record sales were also reported. Nvidia also expects additional revenue growth for the current quarter.
computer games
Nvidia, which Hwang co-founded in 1993, began as a supplier of graphics cards that were primarily suitable for PC gaming. But the company has grown tremendously recently after it became clear that Nvidia's chips are ideally suited for AI applications that require high computing power.
Meanwhile, Nvidia has also become one of the world's most valuable stock companies. Large companies such as Amazon, the parent company of Facebook, Meta, Microsoft and Google are the group's biggest clients. Together, these companies represent approximately 40% of the total turnover, as they are currently investing heavily in artificial intelligence.
Other companies are rising with it
Shares of other important players in the AI space, such as Advanced Micro Devices (AMD), Super Micro Computer, and Arm, also rose, with their shares rising nearly 17 percent.
Thanks to Nvidia's price jump, the Nasdaq technology index rose 2.3 percent to 15,946 points shortly after the start of trading. Shares of major technology companies such as Amazon, Google's parent company, Alphabet, Microsoft, and Meta Platforms, which owns Facebook, all of which are Nvidia clients, rose to nearly 3 percent. The broader Standard & Poor's 500 index rose 1.3 percent to 5,046 points, and the Dow Jones index lagged 0.6 percent to 38,846 points.
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