NVIDIA stock rallies to record high as Trump’s re-election causes frenzy in AI, chip sector

NVIDIA is riding high, quite literally. The chipmaker’s shares surged to a record on Thursday, becoming the first company ever to cross a staggering $3.6 trillion in stock market value. Investors have been in a cheerful mood since Donald Trump’s return to the White House, spurring optimism for reduced regulations and tax breaks.

The AI chip giant saw its stock jump by 2.2 per cent, a bump that propelled NVIDIA’s market capitalisation to $3.65 trillion, overtaking Apple’s record of $3.57 trillion, set on 21st October. Apple shares also had a decent day, rising by 2.1 per cent, but its market value remained a step behind at $3.44 trillion.

Wall Street’s tech sector has been partying hard, with the S&P 500 technology index climbing over 4 per cent in just two days since Trump’s election victory.

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The buzz around NVIDIA isn’t just politics. The company has become a major player in the US stock market’s tech rally, driven by a fierce competition among Microsoft, Alphabet, and others in the race to dominate artificial intelligence.

NVIDIA’s dominance in AI chip technology has seen its shares soar by 12 per cent this month, tripling its value over the course of 2024. That’s a lot of zeros, and it’s no wonder that the company’s current worth surpasses a who’s who of big names: Eli Lilly, Walmart, JPMorgan, Visa, UnitedHealth Group, and Netflix combined.

Eyes are now on NVIDIA’s upcoming quarterly results, expected on 20th November. Analysts predict a jaw-dropping revenue boost of over 80 per cent, with figures reaching around $32.9 billion.

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Earlier this year, NVIDIA briefly held the world’s most valuable company crown but was soon edged out by tech behemoths Microsoft and Apple. The rivalry among these three giants has kept market watchers entertained, as their valuations have been neck-and-neck for months.

As of Thursday, Microsoft’s market cap was hovering near $3.16 trillion, with its shares ticking up 1.25 per cent. The tech world, it seems, is never short on drama, and NVIDIA’s rise to the top is the latest twist in a market that loves to keep everyone guessing.