Nvidia Shares Reach New Record High, Boosted by AI Trade
Shares of Nvidia reached a new record high on Thursday, surpassing previous highs and attracting investors back to the artificial intelligence trade. The stock rose more than 3% to briefly hit an intraday high of $140.89, beating the previous record of $140.76 set on June 20. Shares closed the day up about 1% at $136.93.
The surge in Nvidia’s stock price comes after Taiwan Semiconductor Manufacturing Company reported a 54% increase in profit and beat third-quarter earnings estimates. The company, which is the world’s largest chip producer, manufactures chips for tech giants like Apple, Nvidia, AMD, and ARM.
Nvidia’s stock has been on an upward trajectory, with a closing high of $138.07 on Monday, exceeding its prior record of $135.58 set on June 18. Year to date, the stock has seen a 180% increase and has grown more than ninefold since the beginning of 2023.
Major tech companies such as Microsoft, Meta, Google, and Amazon are buying Nvidia GPUs in large quantities to build extensive clusters of computers for advanced AI applications. These companies are expected to report their quarterly results by the end of October.
Nvidia has also reported a significant demand for its next-generation AI GPU, named Blackwell, with expectations of generating billions in revenue from the new product in the fourth quarter. CEO Jensen Huang mentioned that the demand for Blackwell is “insane,” indicating a positive outlook for the company’s financial performance.
The industry experts believe that the continued demand for advanced AI technologies and Nvidia’s strong product offerings could further drive the company’s growth in the coming months. This event underscores the increasing importance of AI in various sectors and highlights Nvidia’s position as a key player in the industry.
As the tech industry continues to evolve rapidly, it will be crucial to monitor how Nvidia and other companies adapt to the changing landscape and capitalize on the growing demand for AI solutions. The future developments in the sector could have significant implications for both the industry and consumers, shaping the trajectory of innovation and technological advancements in the years to come.
