Nvidia added about $330 billion in stock market value on Wednesday, a record one-day gain for any company on Wall Street. Nvidia surged close to 13 percent with expectations that its processors will remain in tight demand after Microsoft reported a significant increase in artificial intelligence (AI) spending. On Tuesday, Microsoft announced that AI-related capital spending in the 2024 fiscal year rose 60 percent to $69 billion.
Today, the company’s shares are selling at $117.02, up 12.81 percent.
Nvidia’s surge in stock market value broke Wall Street’s previous record, which it also set on February 22 with a $277 billion surge. The company’s value has now reached $2.88 trillion, making it Wall Street’s third most valuable company, following Apple and Microsoft.
Nvidia briefly became the world’s most valuable company in June, taking Microsoft’s top spot with a market cap of $3.335 trillion. The tech giant’s shares have risen more than 150 percent in the last year, more than any other major U.S. company by far.
Microsoft reported a deceleration in its core cloud business, but a huge increase in capital expenditures. Since Microsoft makes up approximately 20 percent of the demand for Nvidia’s AI chips, increasing capex spending at Microsoft bodes well for Nvidia.
Read: Amazon’s market value exceeds $2 trillion as stock surges 3.9 percent on AI optimism
The company’s performance has witnessed increasing volatility, with the latest rally coming just a day after shares dropped 7 percent, wiping $193 billion off the company’s value.
With the rise in demand for AI chips amid the tech rally from tech giants including Microsoft, Meta and Google, the company now controls around 80 percent of the market for AI chips.
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