Nvidia sets record for biggest daily gain in value in stock market history.
The Californian-based chip maker added $330 billion to its market capitalization in a single day, breaking its previous record set in February.
Nvidia’s shares soared nearly 13% due to high demand for its chips. Microsoft’s announcement of a 60% increase in AI-related spending contributed to the surge.
Nvidia’s market cap now stands at $2.88 trillion, making it the world’s third-most valuable company after Apple and Microsoft. Its stellar run has been marked by extreme volatility, with shares dropping 7% just a day prior, wiping $193 billion off its value.
Founded in 1993, Nvidia initially focused on 3D graphics for gaming but began developing GPUs for other applications during the 2000s. The company now controls about 80% of the market for chips used in data centers needed to run AI models.
Nvidia went public in 1999 at $12 a share. If an investor had bought 100 shares then, they would today hold stock worth over $5.6 million.
Source: https://www.aljazeera.com/economy/2024/8/1/nvidia-records-biggest-daily-gain-in-market-value-in-history