This chip-making company crossed the market capitalisation of Reliance Industries in a single trading session

In the past year, the company's shares have yielded whooping multibagger returns of 278.42 per cent.

NVIDIA Corporation a provider of computing infrastructure, saw a sharp increase in shares at opening and reached a new all-time high on February 22 following its better-than-expected quarterly earnings. This helped the company to boost the Nasdaq 100 and S&P 500 indexes. NVIDIA soars 16.40 per cent while the Nasdaq reaches a record high.

NVIDIA Corporation is an American semiconductor company and a leading global manufacturer of high-end graphics processing units (GPUs). Based in Santa Clara, California, NVIDIA holds approximately 80 per cent of the global market share in GPU semiconductor chips as of 2023.

Rise of AI propelling growth

Due to the rising demand for artificial intelligence across the globe, the chip maker's net income for the fourth quarter ending January 28, 2024, increased by 769 per cent year over year and 33 per cent sequentially to USD 12.3 billion. The same period's revenue surged dramatically to USD 22.1 billion, up 265 per cent from a year ago and up 22 per cent from the prior quarter.

The company has been a major beneficiary of the AI boom, with technology companies increasingly integrating AI into their products and services. NVIDIA's strong performance is seen as a testament to the continued growth of AI in various industries.

Jensen Huang, founder and CEO of NVIDIA said that Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations. He further said NVIDIA RTX, introduced less than six years ago, is now a massive PC platform for generative AI and is enjoyed by 100 million gamers and creators.

Stock performance

On February 21 the stock closed at USD 674.72 and next day it opened at USD 750.20 and closed at USD 785.38, up by 16.40 per cent. Shares of the company hit all time high at USD 785.75, while its 52-week low stands at USD 222.97.

Market capitalisation

Just in one day, the company has added USD 277 billion, which is the highest among any of the companies that have added in a day. Interestingly, the total market capitalisation of the biggest company in India, Reliance Industries, has a total market capitalisation of approximately USD 243 billion. As of February 22, the company has a total market cap of approximately USD 1.93 trillion.

In the past year, the company's shares have yielded a whooping multibagger return of 278.42 per cent.

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Disclaimer: The article is for informational purposes only and not an investment advice.