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Nvidia closes with a $2 trillion valuation, while Dell fuels the AI ​​rally

By Noël Randewich

(Reuters) – Nvidia’s stock market value was on track to close above $2 trillion for the first time on Friday after an upbeat report from Dell Technologies reignited Wall Street’s AI-powered rally.

Shares of Nvidia rose 3.5% after Dell, which sells high-end servers made with Nvidia’s processors, gave an upbeat forecast late Thursday, pointing to a surge in orders for its AI-optimized servers.

Dell shares rose as much as 38% to a record high. They were last up 30%.

Friday’s gain took Nvidia’s market cap to $2.05 trillion, making it Wall Street’s third most valuable company behind Microsoft and Apple at $3.07 trillion and $2.75 trillion, respectively.

Super Micro Computer, another company that sells servers made with Nvidia’s chips, rose 6%.

Other AI-exposed chipmakers rose to record highs, with Broadcom and Marvell Technology up about 8% each, while Advanced Micro Devices rose nearly 5%.

The PHLX chip index rose 4.5% to its own record high, taking its 2024 gain to 18%.

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Nvidia controls about 80% of the high-end AI chip market, with customers including ChatGPT maker OpenAI, Microsoft, Alphabet and Meta Platforms demanding tight supplies of its components to compete in the fast-emerging generative AI sector .

The company recently became Wall Street’s most traded stock by value on a day-to-day basis, replacing Tesla. Investors have traded an average of $36 billion worth of Nvidia shares over the past 30 sessions, compared to $21 billion a day for Tesla.

Nvidia trading reached $28 billion worth of shares on Friday afternoon.

On Feb. 23, the Santa Clara, California-based company added $277 billion in stock market value in just one session, a Wall Street record, after predicting a roughly threefold increase in quarterly revenue.

Nvidia shares are now up 65% through 2024, after more than tripling last year. Last month, the stock market value surpassed Amazon and Alphabet.

A week ago, Nvidia’s stock market value topped $2 trillion for the first time before retreating toward the end of the session.

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Saudi Aramco has a market capitalization of $2.045 trillion, although more than 90% of that is closely held by the government of Saudi Arabia and less than 2% of its shares are available for trading by investors, according to LSEG data.

(Reporting by Noel Randewich; Editing by Kirsten Donovan)

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