Nvidia Corp. is on track to become the first semiconductor firm with a US$2 trillion valuation, another milestone in its ascendancy as the biggest beneficiary of a rush into artificial intelligence-related stocks over the past year.

The chipmaker’s shares rose 0.4 per cent Friday to close at a $1.97 trillion valuation after briefly topping the $2 trillion mark in intraday trading. The gain cements Nvidia’s position as the world’s fourth-most valuable company after rallying nearly 60 per cent since the beginning of the year, with a market capitalization that’s only behind Microsoft Corp., Apple Inc. and Saudi Aramco. 

While Apple and Microsoft took over two years to go from $1 trillion to $2 trillion, Nvidia is on track to accomplish that in under a year’s time as the stock rides Wall Street’s AI frenzy. 

Nvidia shares surged after it reported blowout results that reaffirmed Wall Street bets on the potential for its artificial intelligence technologies. The chipmaker also gave guidance above expectations, driven by AI spending at its biggest customers, including Meta Platforms Inc. 

Nvidia dominates the market for graphics chips designed for complex computing tasks needed to power AI applications that companies are rushing to develop.