NVIDIA (NVDA, Financial) saw its stock price soar to a new record high, as investors flock back to the artificial intelligence (AI) sector. After a period of slowed trading activity since last summer, NVIDIA's shares surged by over 3%, reaching an intraday peak of $140.89. This surpasses the previous record of $140.76 set in June.
The rise in NVIDIA's stock coincided with chip manufacturer TSMC's announcement of better-than-expected third-quarter earnings, with profits increasing by 54%. TSMC supplies chips to major companies including Apple, NVIDIA, AMD, and ARM.
Earlier in the week, NVIDIA's stock closed at $138.07, breaking another record from June. The stock has skyrocketed by 180% this year alone, increasing more than ninefold since the beginning of 2023.
Tech giants like Microsoft, Meta, Google, and Amazon are heavily investing in NVIDIA's GPUs to build expansive computing clusters for their advanced AI projects. These companies are expected to release their quarterly earnings by the end of October.
NVIDIA has recently announced a significant demand for its next-generation AI GPU, Blackwell, which is anticipated to generate billions in revenue during the fourth quarter.
