Nvidia shares reached a record high on Monday as Wall Street anticipates the upcoming earnings season and awaits updates from the chipmaker’s key customers regarding their investments in artificial intelligence infrastructure.
The stock rose 2.4%, closing at $138.07, surpassing its previous peak of $135.58 from June 18. Year-to-date, Nvidia’s shares have surged nearly 180%, soaring more than ninefold since January.
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The company has emerged as the primary beneficiary of the generative AI surge that began with the launch of OpenAI’s ChatGPT in November 2022. Nvidia’s graphics processing units (GPUs) are essential for developing and deploying advanced AI models that support ChatGPT and similar technologies.
Major corporations such as Microsoft, Meta, Google, and Amazon are buying Nvidia GPUs in large quantities to construct extensive computer clusters for their AI initiatives. These companies are all expected to announce their quarterly earnings by the end of October.
As tech giants invest billions in AI development, a significant portion of this spending is directed toward Nvidia, which holds approximately 95% of the market for AI training and inference chips, according to Mizuho analysts.
Nvidia’s revenue has more than doubled for five consecutive quarters, with at least tripling in three of those periods. While growth is anticipated to moderate for the remainder of the year, analysts predict an expansion of around 82%, reaching $32.9 billion for the quarter ending in October, based on LSEG data.
With a market capitalization of $3.4 trillion, Nvidia is the second-most valuable publicly traded company in the U.S., trailing only Apple, which is valued at approximately $3.55 trillion.
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Market Recap Week of 10/07/2024 to 10/11/2024