Nvidia stock market value smashes Wall Street's biggest one-day gain record with $277bn gain

Nvidia's stock market value rose sharply with a record gain of $277 billion, smashing Wall Street's record of largest one-day gain.

The market registered a skyrocketing jump after the chipmaker giant's quarterly report was brought to light on Thursday, which noted results above the expectations, leading to an upswing in the ever-increasing optimism around artificial intelligence (AI). 

Nvidia's stock value jumped 16.4% to close at $785.38, taking its overall market capitalisation to $1.96 trillion after its January-quarter report reflected on the rising demand of its AI focused chips — utilised in AI computing — rising beyond analysts' high expectations.

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What further fueled the worldwide rally in technology-related stocks was results of the Santa Clara, a California-based company, which increased the S&P 500,Europe's STOXX 60, and Japan's Nikkei share average to record highs.

On Thursday, traders traded $65 billion worth of Nvidia's shares, which represented nearly 20% of all trading in S&P 500 stocks. Nvidia's single-day surge in stock market value set a new record on Wall Street, surpassing Meta Platforms' $196 billion gain on February 2, 2024. 

This increase exceeded the total value of Coca-Cola at $265 billion. As a result, Nvidia became the third-most valuable company in the US stock market, overtaking Amazon.com and Alphabet. Microsoft and Apple remain the top two most valuable companies on Wall Street, with valuations of $3.06 trillion and $2.85 trillion, respectively. 

Nvidia's stock has risen by 58% in 2024, contributing over a quarter of the S&P 500's year-to-date increase. This makes Nvidia's performance important not only for its shareholders but also for those having index funds in retirement savings accounts. 

Russ Mould, investment director at AJ Bell, emphasised the significance of the provision of tools for success, equating it with the success of those who profited from the mid-1800s gold rush.