Nvidia's market capitalization reaches $2 trillion.

Shares of US chipmaker Nvidia surged in early trading on February 23, at one point pushing its market capitalization to $2 trillion for the first time.

At the opening of trading on Friday, Nvidia's stock price surged 4.9% to a record high of $823.9, pushing its market capitalization to $2 trillion. However, by the close of trading, the gains had narrowed to just 0.4%. The company's market capitalization currently stands at $1.97 trillion.

Nvidia is benefiting greatly from the global demand for AI chips. The company currently controls 80% of the high-end AI chip market.

The company reached a market capitalization of $1 trillion in May 2023. Earlier this month, it surpassed Alphabet to become the third most valuable company in the US. On February 22nd, Nvidia's stock rose 16%, adding $277 billion to its market capitalization – the largest increase in US stock market history.

According to Reuters , Nvidia took only 8 months to go from a market capitalization of $1 trillion to $2 trillion – the shortest time in Wall Street history and half the time it took tech giants like Apple and Microsoft. These are two of the few companies in the world with a market capitalization exceeding $2 trillion.

Nvidia shares have surged in recent sessions after the company released its financial report for the quarter ending at the end of January 2024. According to the report, revenue more than tripled compared to the same period last year, reaching over $22 billion. Profits increased eightfold, to $12.3 billion.

Since the beginning of the year, Nvidia's stock has risen nearly 60%. Last year, the company's market capitalization tripled. Nvidia's growth this year has contributed significantly to the performance of the S&P 500 index.

"For current AI companies, the question isn't whether there's demand, but what they'll do to meet that skyrocketing demand," said Ipek Ozkardeskaya, an analyst at Swissquote Bank.

"Cloud computing companies are planning to increase investment to meet the world's AI needs. It looks like almost all of that spending will go to Nvidia," said Brian Colello, a strategist at Morningstar. He forecasts Nvidia's revenue will increase by several billion dollars each quarter until fiscal year 2025.

Ha Thu (according to Reuters, CNN)

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