- Nvidia’s stock hit an all-time high on Monday, driven by increasing demand for its GPUs, particularly from hyperscalers building AI data centers.
- Nvidia’s next-generation Blackwell GPU platform is experiencing “insane demand” according to CEO Jensen Huang, with everyone wanting to be first to acquire it.
- Nvidia announced a partnership with healthcare startup Aidoc to accelerate AI adoption in the healthcare industry by providing a framework for integrating AI to improve clinical workflows and patient care.
Nvidia Inc.’s (NASDAQ: NVDA) shares are hitting new all-time highs on Monday as the stock continues to be a massive beneficiary of increasing AI demand. Here’s what you need to know.
Nvidia Stock Performance
Nvidia shares are up over 186% since the start of the year and have increased more than ninefold since the beginning of 2023, shortly after ChatGPT was launched. On Monday, the stock reached a new all-time high above $142 after it took out its previous highs from June last week.
Demand Drivers
Nvidia has benefited from strong demand for its GPUs, particularly from hyperscalers who are purchasing its chips in massive quantities in an effort to quickly build out data centers with advanced AI capabilities.
The company’s next-generation Blackwell GPU platform is currently experiencing “insane demand,” according to Nvidia CEO Jensen Huang. Huang said in a CNBC interview earlier this month that Blackwell is in full production and progressing as planned as demand remains “off the charts.”
“Everyone wants to have the most and everyone wants to be first,” Huang said at the time.
Earnings Insights
Investors will get more insight into the ongoing demand for Nvidia chips when some of its biggest customers, including Microsoft, Meta, Google and Amazon, report earnings over the coming weeks.
Nvidia will also report its fiscal third-quarter financial results on Nov. 20. Analysts are currently forecasting earnings of 74 cents per share and revenue of $32.904 billion, according to estimates from Benzinga Pro.
Analyst Take
Last week, BofA Securities analyst Vivek Arya maintained a Buy rating on Nvidia and raised the price target from $165 to $190 after boosting earnings projections for 2025 and 2026. The analyst highlighted recent earnings from Taiwan Semiconductor Manufacturing Company Ltd (TSM) showing that demand for AI remains robust.
Potential Headwinds
Despite the positive momentum, the company faces potential challenges from new export restrictions, particularly on advanced AI chips to Persian Gulf countries, which has sparked some volatility in the chip sector in recent weeks. The Biden administration has already placed restrictions on AI chip exports to over 40 countries across the Middle East, Africa and Asia in an effort to stop the technology from potentially reaching China.
Latest Partnership
Nvidia on Monday announced a partnership with healthcare startup Aidoc to accelerate the adoption of AI in the healthcare industry. The companies plan to release a new “Blueprint for Resilient Integration and Deployment of Guided Excellence” in early 2025 aimed at improving clinical workflows and patient care. The guideline will provide a comprehensive evidence-based framework to help healthcare organizations integrate AI more effectively and scale its use to improve operational efficiency and outcomes.
Conclusion
Nvidia shares continue to hit new highs as demand for its advanced AI chips remains very strong. While regulatory headwinds persist, the company is poised to continue benefiting from robust spending by hyperscalers and new initiatives to expand the use of AI technology.
