Nvidia sees historic stock rise on AI chips success

Nvidia is now worth nearly $2 trillion, behind only Apple and Microsoft

(Image credit: Justin Sullivan / Getty Images)

What happened?

U.S. chipmaker Nvidia achieved the biggest one-day increase in value of any company in history, as investors clamored to buy into the growing artificial intelligence industry. Thursday's rally made Nvidia worth nearly $2 trillion, behind only Apple and Microsoft.

Who said what?

The world is at an AI "tipping point," said Nvidia chief executive Jensen Huang as he delivered another heady sales forecast. Demand for the microchips that power AI is now "surging worldwide across companies, industries and nations."

The commentary

Nvidia's "journey to become one of the three most-valuable U.S. companies might have started at a Denny's in 1993," but it was turbocharged by its recent dominance of the AI chip market, The Wall Street Journal said. Nvidia's GPU chips, worth tens of thousands of dollars each, "are so valuable" they're delivered "by armored car" to some clients.

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What next?

The rapid surge in technology stock values has "prompted fears of a bubble fueled by AI mania," Britain's Telegraph said. "What bubble?" countered Bloomberg. Nvidia's profits "are rising even more than its shares."

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.