.jpeg)
On Monday, shares increased by 2.4%, surpassing $138. Previously, Nvidia had achieved a record closing price of $135.58 in June.
The stock has experienced significant growth in October, including a streak of six consecutive days of gains at one point.
This upward trend began on October 2, following the announcement of a substantial $6.6 billion funding round for OpenAI, the creator of ChatGPT. A significant portion of this funding is expected to be directed back to Nvidia, as OpenAI's expanding energy requirements will necessitate more of its AI chips.
Nvidia's shares have maintained their upward momentum, driven by a series of positive developments for the AI chipmaker. Last week, Wall Street analysts reaffirmed their Buy ratings for Nvidia. KeyBanc issued a report projecting that revenues from Nvidia's new Blackwell chips could reach $7 billion in the fourth quarter, while demand for its older GPUs remains exceptionally strong. Additionally, Wedbush analysts noted that a potential influx of funding for AI startups could further enhance Nvidia's financial position.
During its AI Summit in Washington, D.C., Nvidia also highlighted the strength of its software solutions. On the same day, Nvidia and Foxconn announced plans to construct Taiwan's largest supercomputer at Foxconn's annual technology showcase in Taipei. Foxconn also revealed details about a megafactory it is establishing in Mexico to assemble Nvidia servers utilizing its Grace Blackwell chips, thereby reducing Nvidia's dependence on China amid escalating trade tensions.
Nvidia's gains on Monday brought it closer to surpassing Apple as the world's most valuable company. After the market closed, Nvidia's market capitalization stood at $3.4 trillion, compared to Apple's $3.5 trillion. Over the past year, Apple, Microsoft, and Nvidia have frequently exchanged positions as the top three companies.
Nvidia has significantly rebounded from previous declines following the announcement of its second quarter earnings.
In late August, shares dropped after Nvidia did not meet the heightened expectations of analysts, leading to further declines when a Bloomberg report revealed that the US Department of Justice had issued a subpoena to the company in early September, a claim Nvidia refuted. Additionally, concerns regarding potential demand disruptions from China due to escalating trade tensions with the US contributed to the stock's downturn. The recent fluctuations in Nvidia's stock have been further influenced by its 10-for-1 stock split that occurred in June.
Positive developments within the semiconductor industry may support Nvidia's recovery. TSMC, one of Nvidia's key chip suppliers, reported sales that exceeded Wall Street's forecasts, suggesting sustained demand for AI technology in the near future.
“AI is hot,” stated Patrick Moorhead, CEO of Moor Insights and Strategy, in an interview with Yahoo Finance, emphasizing that he anticipates ongoing growth in AI data center investments over the next year.
The gains in the semiconductor sector indicate that significant investments by major tech companies in AI hardware are likely to continue, despite Wall Street's concerns about a potential slowdown.
According to the latest WSTS data analyzed by JPMorgan, semiconductor industry sales surged by 28% in August compared to the previous year and increased by 15% from July. Young Liu, chair of Nvidia's server manufacturer Foxconn, mentioned in a Bloomberg Television interview that the company is expanding its capacity to accommodate the "crazy" demand for Nvidia's AI chips, or GPUs. Nvidia CEO Jensen Huang remarked in a CNBC interview last week that the demand for the latest Blackwell chips has been "insane."
Nvidia is scheduled to release its earnings report on November 19. Analysts on Wall Street anticipate that the company will report revenues of $33 billion, reflecting an 82% increase from the previous year, based on Bloomberg consensus estimates. Approximately 90% of Wall Street analysts monitoring the stock recommend purchasing Nvidia shares.