Nvidia (NVDA, Financial) stock closed at a new all-time high, reaching a market capitalization of $3.39 trillion, making it the second-largest publicly traded company in the U.S., just behind Apple at $3.52 trillion. As Wall Street anticipates the earnings season, Nvidia's major clients are expected to update their spending on AI infrastructure.
The stock of this chip manufacturer rose by 2.4% to $138.07, surpassing the previous record of $135.58 set on June 18. Nvidia shares have surged nearly 180% this year and have increased over ninefold since the beginning of 2023. Known as a key player in the AI boom, Nvidia provides the graphics processing units (GPUs) vital for creating and deploying advanced AI models, which power technologies like ChatGPT.
Companies such as Microsoft, Meta, Google, and Amazon are significantly investing in Nvidia's GPUs to expand their AI-centric computing clusters. These tech giants will report their quarterly earnings by late October. Analysts from Mizuho highlight that Nvidia is pivotal in the AI industry, controlling around 95% of the AI training and inference chip market, which is a major component of the billions spent annually by top tech companies on AI infrastructure.
Nvidia's revenue has more than doubled each quarter over the past five quarters, with three quarters seeing at least a twofold increase. According to LSEG data, growth is expected to moderate slightly for the remainder of the year, with analysts projecting an 82% increase in revenue to $32.9 billion for the fiscal quarter ending in October. Nvidia CEO Jensen Huang recently noted a 'frenzied' demand for the next-generation AI GPU, Blackwell, anticipated to generate billions in revenue in the fourth quarter.
