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 the morning of May 25, after the previous day'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.
At the end of the trading day, Nvidia’s market cap had increased by $184 billion to around $940 billion, making it one of the biggest-ever single-day gains in U.S. market history. 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 big leap all the more impressive.