Nvidia, a leading AI chipmaker has seen its share price soar to an all-time high as the company rides on a massive demand for its Artificial Intelligence chips.
With a market valuation exceeding $3.4 trillion, Nvidia’s revenue has continued to skyrocket, more than doubling over recent quarters and tripling in some cases. The company’s stock closed at a record $138.07 on Monday, surpassing its previous high of $135.58 in June. The shares have surged nearly 180% this year alone and have skyrocketed more than nine-fold since the beginning of 2023, cementing Nvidia as a dominant player in the Al revolution.
Nvidia’s surge in valuation comes as major tech companies which include Microsoft, Meta, Google, and Amazon are purchasing its graphics processing units (GPUs), in large quantities to build large-scale AI infrastructure. While analysts anticipate Slightly slower growth for the remainder of the year, the company is still expected to see an 82% revenue increase, reaching $32.9 billion in the quarter ending in October.
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According to Mizuho analysts, Nvidia controls roughly 95% of the market for Al training and inference chips. The company’s revenue has more than doubled for five consecutive quarters, and despite a slight slowdown expected later this year, the launch of its next-generation Al GPU, Blackwell, is already generating overwhelming demand. Nvidia anticipates significant revenue from Blackwell in the fourth quarter, as it continues to lead the Al hardware market.
Recall that earlier this month, Nvidia’s CEO Jensen Huang in an interview with CNBC, disclosed that demand for the company’s next-generation artificial intelligence chip Blackwell is “insane.” “Everybody wants to have the most and everybody wants to be first,” Huang said during the interview.
According to Morgan Stanley, which hosted meetings with Huang and other Nvidia executives, the chips are already sold out for the next 12 months.
Nvidia has been the major beneficiary of the Artificial intelligence boom, with shares up about 150% year-to-date. The company’s remarkable growth positions it as a key supplier of Al infrastructure which has propelled it to become the second-most valuable publicly traded U.S. company, just behind Apple, which currently holds a market cap of $3.55 trillion. As Al’s development accelerates, Nvidia remains at the forefront, providing the essential hardware for one of the most transformative technologies of this era.
The CEO Jensen, said Nvidia plans to update its AI platform each year to increase performance by two to three times. He sees the rise of generative AI as a new industrial revolution and expects Nvidia to play a major role as the technology shifts to personal computers.