Nvidia’s Remarkable Rally: $330 Billion Market Value Surge in One Day
Nvidia Makes History on Wall Street
Nvidia recorded the largest single-day market value leap in Wall Street history on July 31st.
The stock surged by nearly 13% amid expectations that its high-end processors will continue to be in high demand following Microsoft’s massive increase in Artificial Intelligence spending.
Record-Breaking Market Cap
Based in California, the chip manufacturer added $330 billion to its market capitalization, surpassing the previous record set in February with a daily gain of $277 billion.
Nvidia is currently valued at $2.88 trillion, making it the third most valuable company on Wall Street, behind Apple and Microsoft.
Unprecedented Growth and Volatility
So far in 2024, Nvidia’s stock price has surged by over 140%, outperforming the Nasdaq gains of 17%.
The company’s unprecedented growth has also been marked by extreme volatility, with the latest rally occurring just a day after a 7% dip, wiping out $193 billion of market value.
Nonetheless, Nvidia remains the standout performer among U.S.-listed companies in the past year.
Leading the AI Boom
Nvidia has undeniably been the primary beneficiary of the AI boom, with its stock doubling so far in 2024 and increasing by over 500% since the launch of ChatGPT in November 2022 sparked intense investor interest in AI technology.
The company now controls approximately 80% of the market for chips used in data centers necessary for running AI models, driven by the insatiable demand from tech giants like Microsoft, Meta, and Google.
Future Outlook and CEO’s Success
Analysts at Morgan Stanley have named Nvidia a “top pick,” foreseeing that concerns regarding competitive dynamics, export controls, and supply chain issues will likely “fade over time.” CEO Jensen Huang, on the other hand, added nearly $12 billion to his fortune in a single day, matching Nvidia Corp’s record day.
This marks the largest single-day dollar gain for the co-founder and CEO, propelling his net worth back over $100 billion for the first time in a week and ranking him as the 14th richest person globally.
