Tech Giant Nvidia Sees Stock Soar 25% in One Month, Closing in on Record High Ahead of Earnings Season
Nvidia’s stock has experienced a remarkable surge, jumping 25% in just one month, putting it on track to reach an all-time high. This upward trend is expected to continue as the tech earnings season approaches, with major customers like Meta, Microsoft, and Alphabet set to provide updates on their investments in artificial intelligence.
After a brief dip in late August and early September, Nvidia’s stock has rebounded sharply, currently trading at around $132, just shy of its record high of $135.58 reached in July. The company has surpassed Microsoft as the second-most valuable company, behind only Apple.
Nvidia’s success can be attributed to its dominant position in the AI boom, with companies like Meta, OpenAI, Alphabet, Microsoft, and Oracle relying heavily on its graphics processing units (GPUs) for their AI technologies and products. The company’s second-quarter earnings report showed a 122% year-over-year revenue increase, with net income more than doubling to $16.6 billion.
Demand for Nvidia’s products is extremely high, with the company expecting to ship several billion dollars worth of its new Blackwell AI chip. The current-generation Hopper chip is also expected to see increased shipments over the next two quarters. According to Mizuho analysts, Nvidia has a staggering 95% market share in AI training and inference chips for data center applications, with a price target of $140 on the stock.
CEO Jensen Huang has described the demand for the Blackwell chip as “insane,” with production expected to ramp up in the fourth quarter and continue into fiscal 2026. The chip, which will cost between $30,000 and $40,000 per unit, is highly sought after by companies looking to invest in AI technology.
While Nvidia’s stock has rallied due to its strong earnings report and high demand for its products, it has also been boosted by other factors, including a filing that showed CEO Jensen Huang finishing the sale of company stock. As the tech earnings season approaches, all eyes will be on Nvidia to see if it can continue its upward trend and reach new heights.
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