Nvidia’s stock (NVDA) surged by 1.6% on Thursday, closing at $134.81, just shy of its all-time high of $135.58 achieved in June. The stock’s rise has been driven by a powerful wave of optimism surrounding artificial intelligence (AI), with Nvidia firmly positioned as a leader in AI chip development. Shares are up nearly 10% over the past week, underscoring strong investor confidence in the company’s future prospects.
Wall Street analysts have reiterated their “Buy” ratings on Nvidia, citing strong revenue projections. KeyBanc expects Nvidia to generate $7 billion in Q4 from its next-generation Blackwell chips, while demand for older GPUs remains robust. Nvidia is also benefiting from a potential influx of funding for AI startups, which could further bolster revenues. Wedbush analysts highlight that this growing demand will continue to fuel Nvidia's expansion.
At Nvidia’s AI Summit in Washington, D.C., the company showcased the breadth of its AI software capabilities. Simultaneously, Nvidia announced a partnership with Foxconn to build Taiwan’s largest supercomputer, signaling a strategic move to expand its AI infrastructure. Foxconn also revealed plans to assemble Nvidia’s Grace Blackwell chips in a new factory in Mexico, reducing Nvidia's exposure to China amid rising trade tensions.
Despite recent market volatility following Nvidia's 10-for-1 stock split and the U.S. Department of Justice subpoena, which Nvidia denied, the company has staged a strong comeback. August’s earnings report, which disappointed some investors, initially pushed the stock down, but recent news has more than offset those losses.
The broader semiconductor sector, which Nvidia is a key player in, is also experiencing significant gains. TSMC (TSM), one of Nvidia's primary chip manufacturers, recently exceeded sales expectations, reinforcing optimism that AI-related demand will remain strong. Industry sales surged 28% in August compared to the previous year, with a 15% jump from July, according to data from the World Semiconductor Trade Statistics (WSTS) reviewed by JPMorgan.
Nvidia CEO Jensen Huang emphasized the unprecedented demand for their Blackwell chips, calling it "insane." Patrick Moorhead, CEO of Moor Insights & Strategy, predicts continued growth in AI data centers over the next 12 months, reflecting the ongoing appetite for AI infrastructure among tech giants. Foxconn’s chairman, Young Liu, echoed these sentiments, noting that the demand for Nvidia GPUs is “crazy” as the company scales production to meet market needs.
With AI driving technological advancements and Nvidia positioned as a dominant player, the stock's momentum shows no signs of slowing as the company continues to capitalize on the AI boom.
Wall Street analysts have reiterated their “Buy” ratings on Nvidia, citing strong revenue projections. KeyBanc expects Nvidia to generate $7 billion in Q4 from its next-generation Blackwell chips, while demand for older GPUs remains robust. Nvidia is also benefiting from a potential influx of funding for AI startups, which could further bolster revenues. Wedbush analysts highlight that this growing demand will continue to fuel Nvidia's expansion.
At Nvidia’s AI Summit in Washington, D.C., the company showcased the breadth of its AI software capabilities. Simultaneously, Nvidia announced a partnership with Foxconn to build Taiwan’s largest supercomputer, signaling a strategic move to expand its AI infrastructure. Foxconn also revealed plans to assemble Nvidia’s Grace Blackwell chips in a new factory in Mexico, reducing Nvidia's exposure to China amid rising trade tensions.
Despite recent market volatility following Nvidia's 10-for-1 stock split and the U.S. Department of Justice subpoena, which Nvidia denied, the company has staged a strong comeback. August’s earnings report, which disappointed some investors, initially pushed the stock down, but recent news has more than offset those losses.
The broader semiconductor sector, which Nvidia is a key player in, is also experiencing significant gains. TSMC (TSM), one of Nvidia's primary chip manufacturers, recently exceeded sales expectations, reinforcing optimism that AI-related demand will remain strong. Industry sales surged 28% in August compared to the previous year, with a 15% jump from July, according to data from the World Semiconductor Trade Statistics (WSTS) reviewed by JPMorgan.
Nvidia CEO Jensen Huang emphasized the unprecedented demand for their Blackwell chips, calling it "insane." Patrick Moorhead, CEO of Moor Insights & Strategy, predicts continued growth in AI data centers over the next 12 months, reflecting the ongoing appetite for AI infrastructure among tech giants. Foxconn’s chairman, Young Liu, echoed these sentiments, noting that the demand for Nvidia GPUs is “crazy” as the company scales production to meet market needs.
With AI driving technological advancements and Nvidia positioned as a dominant player, the stock's momentum shows no signs of slowing as the company continues to capitalize on the AI boom.