On Monday, Nvidia stock hit a record high as Wall Street was preparing for earnings season, and a new update on a new artificial intelligence infrastructure plan from all of Nvidia’s biggest chip customers.
The stock rose by 2.4% and closed at $138.07, surpassing the June 18 record of $135.58. The shares are now soaring to almost 180% within this year and have surged more than nine-fold since the beginning of 2023.
Nvidia is known as the major beneficiary of the AI boom. Its graphic processing unit (GPU) is used to create and deploy AI models that power generative AI software.
The AI boom began with the public release of ChatGPT from OpenAI in November 2022.
Big tech companies like Microsoft, Google, Meta, and Amazon are buying a gigantic amount of Nvidia’s GPU to expand their massive array of computers used in advanced AI work. These companies are scheduled to report quarterly results by the end of October.
The majority of the billions of dollars in AI investment from various big tech companies goes to Nvidia, which controls as much as 95% of the AI chip market, according to analysts at Mizuho.
In each of the past five quarters, Nvidia’s revenue has more than doubled, and at least three of these quarters are reporting tripled. According to LSEG, Nvidia’s growth is predicted to continue to expand, but at a slower pace for the rest of the year, with analysts suggesting an expansion of around 82% to $32.9 billion in the 3Q.
Nvidia has stated that the demand for its next-generation AI GPU “Blackwell” is very impressive, and the company expects it to generate billions of dollars in revenue in 4Q.
Nvidia is now the second-most valuable publicly traded U.S. company at $3.4 billion, just shy of Apple at around $3.55 trillion.
