Kamal Ghorui
Shares of Nvidia surged to a record high on Friday, pushing its market capitalisation past $5 trillion for the first time since October, as investor enthusiasm for artificial intelligence chips gathered pace ahead of key earnings from major tech firms.The stock climbed 4.3% to close at $208.27, marking a strong comeback after a weak start to the year.According to Yahoo Finance, Nvidia added more than $200 billion in market value in a single session, briefly reaching about $5.12 trillion.
AI boom drives massive rally
Nvidia’s meteoric rise has been fuelled by soaring demand for AI infrastructure, with its chips powering systems used by Google, Microsoft, Meta and Amazon, as well as AI firms like OpenAI and Anthropic, reported CNBC.The stock is now up more than 14-fold since the end of 2022, highlighting the scale of investor confidence in AI-driven growth.
Chip sector rally boosts momentum
The latest surge was triggered by strong earnings from Intel, whose shares jumped 24%—their best performance since 1987—signalling renewed momentum across the semiconductor space.Other chipmakers also rallied sharply. Advanced Micro Devices rose 14%, while Qualcomm gained 11%.The broader semiconductor index is on a historic winning streak, lifting valuations across the sector and supporting Nvidia’s rebound after earlier losses this year.
Tech stocks rebound despite oil concerns
The rally comes after a brief pullback in large-cap tech stocks amid rising oil prices linked to the Iran conflict and supply chain disruptions. However, investors are once again rotating into technology, betting that AI demand will remain resilient.The Nasdaq Composite is now up 15% in April, on track for its best monthly performance since 2020.Despite its dominance, Nvidia faces increasing competition. Alphabet has announced plans to roll out its own AI chips to cloud customers later this year, potentially challenging Nvidia’s market share.Still, with hyperscaler earnings due next week and AI spending showing no signs of slowing, investors continue to back Nvidia as the central player in the global AI race.
