Chip giant Nvidia nears trillion-dollar status on AI bet

Nvidia Corp surged 24% on Thursday in one of the largest one-day gains in value for a U.S. stock, after its stellar revenue forecast showed that Wall Street has yet to price in the game-changing potential of AI.

The surge more than doubled the stock’s value for this year and increased the chip designer’s market capitalization by about $184 billion to nearly $939 billion.

That makes Nvidia twice as big as the second-largest chip firm, Taiwan’s TSMC. In the United States, it trails only trillion-dollar-value companies Apple Inc, Alphabet Inc, Microsoft Corp and Amazon.com Inc.

The rosy earnings also sparked a rally in the chip sector and for AI-focused firms, lifting stock markets from Japan to Europe.