Nvidia briefly hit a market value of US$2 trillion on February 23, 2024, marking a record growth in stock for the multinational tech company. As per reports, this rise has occurred due to the current global market's high demand for AI chips, thus positioning Nvidia as a key player in the AI industry.

The milestone followed another bumper revenue forecast from the chip designer that drove up its market value by $277 billion on February 22 - Wall Street's largest one-day gain on record.

Its rapid ascent in the past year has led analysts to draw parallels to the picks and shovels providers during the gold rush of the 1800s as Nvidia's chips are used by almost all generative AI players from ChatGPT-maker OpenAI to Google.

This has helped the company vault from $1 trillion to $2 trillion market value in around eight months - the fastest among U.S. companies and in less than half the time it took tech giants Apple and Microsoft.

"For AI companies today - the leaders of the sector - what's going to be binding for them is not going to be demand. It's just going to be their capacity to answer the surging demand," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

Nvidia's shares closed 0.4% higher on February 23, giving it a market value of about $1.97 trillion. They had risen as much as 4.9% to a record high of $823.94 earlier in the session, after a more than 16% jump on February 22.