May 25, 2023 (Statista) – Thanks to its leading role in the global chip industry, Nvidia is expected to be at the forefront of the AI gold rush and after its latest earnings release, investors rushed to hop on board and go along for the ride. Nvidia’s market capitalization jumped by nearly $200 billion on Thursday morning, after Wednesday’s earnings release had revealed how much the chipmaker could really profit from the AI boom.
“A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process,” Jensen Huang, founder and CEO of Nvidia said in the company’s latest earnings release, which saw the company provide an outlook for the current quarter that blew away analysts’ expectations.
As the following chart shows, Nvidia’s big leap, which propelled its market capitalization to around $950 billion, was the biggest ever for a U.S. company in absolute terms. Apple and Amazon had previously both seen their market capitalization increase by $191 billion in a single day in November and February 2022, respectively, but both were valued far above $1 trillion at the time, making Nvidia’s record all the more impressive if it can hold on to its gains throughout the trading day.