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Nvidia surpasses $3.6 trillion market value after Trump win

Published 08/11/2024, 08:34 am
Updated 08/11/2024, 08:49 am
© Reuters. FILE PHOTO: A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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By Noel Randewich

(Reuters) - Shares of Nvidia rallied to a record high on Thursday, making the chipmaker the first company in history to surpass a stock market value of $3.6 trillion as Wall Street extended a rally sparked by Donald Trump's return to the White House.

The dominant AI chipmaker's shares rose 2.2%, lifted by broad investor optimism about tax cuts and lower regulations after the Republican candidate's Tuesday election victory.

Nvidia's stock market value ended the day at $3.65 trillion, beating Apple (NASDAQ:AAPL)'s record closing market capitalization of $3.57 trillion reached on Oct. 21, before the chipmaker on Tuesday overtook the iPhone maker as the world's most valuable company, according to LSEG data.

Apple's stock rose 2.1% on Thursday, leaving it with a market value of $3.44 trillion.

The S&P 500 technology index has surged over 4% in the two sessions since Trump won the election on Tuesday. 

Nvidia has been the U.S. stock market's biggest winner from a race between Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and other heavyweights to build out their AI computing capacity and dominate the emerging technology.   

The Silicon Valley chip designer's stock has climbed 12% in November, with its value tripling so far in 2024.

Following this year's surge, Nvidia now exceeds the combined value of Eli Lilly (NYSE:LLY), Walmart (NYSE:WMT), JPMorgan (NYSE:JPM), Visa (NYSE:V), UnitedHealth Group (NYSE:UNH) and Netflix (NASDAQ:NFLX).

Analysts on average see Nvidia increasing its quarterly revenue by over 80% to $32.9 billion when it reports its results on Nov. 20, according to LSEG.

© Reuters. FILE PHOTO: A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

In June, Nvidia briefly became the world's most valuable company before it was overtaken by Microsoft and Apple. The tech trio's market capitalizations have been neck-and-neck for several months.

Microsoft's market value stood at nearly $3.16 trillion, with its stock up 1.25% on Thursday.

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