NVIDIA's market value surpasses $2 trillion for the first time amid AI hype

On Monday, 26 February, NVIDIA's market capitalisation temporarily crossed the $2 trillion mark thanks to strong demand for its chips for artificial intelligence development. The chipmaker's value had briefly reached that mark three days earlier.

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The event followed another optimistic revenue outlook for the company, which last week lifted its value by $277bn in a day. That's a record one-day gain for Wall Street.

NVIDIA's rapid rise over the past year has prompted comparisons to hardware vendors during the gold rush, as its chips are used by virtually all AI developers.

This has allowed the company to increase its value from $1 trillion to $2 trillion in just nine months. That's faster than any other US company and twice as fast as Apple and Microsoft.

Analysts say demand for NVIDIA chips will only grow as the AI market continues to evolve. For industry leaders, the key will be the ability to meet that demand.

Source: Reuters