Nvidia, the Silicon Valley chip designer, achieved a historic milestone on Friday, February 23, surpassing a market valuation of $2 trillion for the first time. This meteoric rise comes amidst an unparalleled demand for its chips, fueled by the current tech fervor centered around artificial intelligence (AI).

The company’s market value soared by $277 billion in a single day following its stellar quarterly report and robust revenue forecast, marking the largest one-day gain on Wall Street to date. This surge eclipsed even the remarkable $197 billion gain made by Meta, the parent company of Facebook.

Analysts have drawn parallels between Nvidia’s rapid ascent and the frenzy surrounding picks and shovels providers during the 1800s gold rush. Nvidia’s chips have become indispensable for almost all major players in generative AI, including industry giants like OpenAI and Google.

In just eight months, Nvidia doubled its market valuation from $1 trillion to $2 trillion, setting a new record for the fastest growth among US companies, achieving in less than half the time it took tech titans Apple and Microsoft.

Nvidia’s shares hit a record high of $823.9 earlier in the session, representing a nearly 60% increase since the beginning of the year, following a more than tripling in value throughout 2023. The company’s surge propelled it to the position of the third-largest S&P 500 company.

Despite this remarkable growth, Nvidia’s valuation, in terms of forward price-to-earnings ratio, has slightly decreased due to the rapid escalation of analysts’ estimates. However, experts remain optimistic about the company’s future, anticipating substantial revenue growth driven by increasing demand for AI-related applications.

The unprecedented success of Nvidia has not only reshaped the landscape of the semiconductor industry but has also played a pivotal role in driving the broader market gains, contributing to over a quarter of the S&P 500’s rise this year.

As demand for AI continues to surge, Nvidia stands at the forefront, poised to capitalize on the burgeoning opportunities in the rapidly evolving tech landscape.