The US microchip giant Nvidia experienced a remarkable surge in its market value, surpassing the entire value of Britain’s largest listed company in a single day. The surge was fueled by the ongoing artificial intelligence (AI) boom, propelling Nvidia’s shares to a new record high.

On Thursday, Nvidia’s shares soared by 10.5%, adding a staggering $245 billion to its market capitalization. This surge came after the company reported a more than threefold increase in sales over the past year, highlighting the strong demand for its advanced computer processors that are integral to AI systems like ChatGPT.

The one-day gain of Nvidia’s market value exceeded that of AstraZeneca, the most valuable constituent of the FTSE 100, by approximately £1 billion. With a market value now standing at $2.58 trillion, Nvidia is approaching the size of the entire FTSE 100, which is valued at around $2.77 trillion.

Over the last year, Nvidia’s shares have surged by an impressive 240%, reflecting the growing importance of its processors in the AI landscape. The company’s success, along with other prominent tech stocks, has been a driving force behind the record highs seen in US stock markets.

Nvidia’s stellar financial performance was underscored by its announcement of a stock split, making individual shares more affordable for investors. The company’s CEO, Jensen Huang, who founded Nvidia in 1993, now boasts a net worth exceeding $90 billion.

Initially known for designing microchips for video game graphics, Nvidia’s transition to AI-focused processors has proven immensely successful, with demand consistently outstripping supply. As a key player in the AI sector, Nvidia’s results are closely watched by traders and investors as a barometer for AI spending trends.

The company’s optimistic outlook, coupled with its strong financials, has further bolstered confidence in the future demand for AI technologies, driving US stock indices to new record highs.

With Nvidia’s continued momentum and the introduction of more advanced chips on the horizon, the company is poised to maintain its position as a leading force in the global AI market.