Chip Giant’s Shares Soar on CEO’s Optimistic Outlook
Nvidia’s stock surged by as much as 5% on Thursday, buoyed by CEO Jensen Huang’s enthusiastic comments on the demand for its cutting-edge Blackwell chips. In a post-market close interview with CNBC on Wednesday, Huang reassured investors that the chips are now in full production, dispelling concerns over recent design issues that had caused delays in customer rollouts. “The demand for Blackwell is unprecedented,” Huang exclaimed. “Everyone wants to get their hands on it, and everyone wants to be the first to market.”
The Blackwell rollout has been highly anticipated by investors, who see it as a major catalyst for the chipmaker’s growth after a recent stock slump. Despite macroeconomic headwinds, including China trade fears and a rotation out of Big Tech, Nvidia’s stock has still managed to climb an impressive 170% over the past year and a staggering 2,700% over the past five years. Year to date, the company’s shares have gained around 150%.
The overwhelming majority of Wall Street analysts – a whopping 90% – recommend Nvidia’s stock as a Buy, with most predicting that shares will reach around $147.60 over the next year. The company’s decision to back ChatGPT developer OpenAI in its latest funding round, which raised an additional $6.6 billion and valued the company at $157 billion, has also contributed to the positive sentiment surrounding Nvidia’s stock.
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