Nvidia shares hit a new high
Chipmaker posed to reclaim title as world’s most valuable company
Nvidia’s shares hit a record high this week, fueled by surging demand for its Blackwell supercomputing AI chips.
The company’s stock closed up 2.4% at $138.07 (€126.6), marking the second time this year that Nvidia has reached a new peak. Analysts remain optimistic about the company's growth in the AI sector, with many maintaining "buy" ratings and increasing their price targets.
Despite recent warnings that Nvidia’s rapid rise may be nearing an end, the company continues to defy expectations, with its share price reaching a new all-time high.
Nvidia, often referred to as "Team Green," now appears poised to reclaim the title of the world’s most valuable company, a position it briefly held earlier this year.
Since January 2023, when Nvidia’s stock traded at just $14.86, its price has surged by an astounding 829%, closing at $138.07 on Monday.
This meteoric rise has been driven by the company’s dominance in the AI sector, with Nvidia supplying an estimated 80% of the advanced GPU hardware used to train and run AI models, including its A100 and H100 series chips. As generative AI continues to fuel tech innovation, Nvidia’s stock has shown no signs of slowing down.
The company's market capitalisation now stands at $3.39 trillion, securing it second place among the world’s largest companies, behind only Apple, which is valued at $3.52 trillion. If current trends persist, Nvidia could soon unseat Apple once again, a position it briefly held in June.
Demand for Nvidia's upcoming Blackwell GPUs, particularly the B200 and GB200 Grace super chip, has created a 12-month backlog, with tech giants like Microsoft, AWS, and Google purchasing all available units for the next four quarters.
In response to this overwhelming demand, Nvidia is partnering with Foxconn to significantly expand production capacity. Foxconn is currently building the largest GB200 production facility in Guadalajara, Mexico, to meet the surge in orders.
Nvidia’s third-quarter fiscal 2025 earnings report, due next month, will be closely watched by investors, especially as potential restrictions on exporting AI chips to China continue to loom.