• Nvidia shares have surged 25% over the last month, closing in on a new record high ahead of tech earnings season
• The company has been the leading beneficiary of the AI boom, as tech giants like Meta, OpenAI, Alphabet, Microsoft, and Oracle continue to unveil new AI technologies requiring investment in Nvidia’s chips
• Demand for Nvidia’s new Blackwell AI chip is so high that the company expects to ship several billion dollars’ worth, with production ramping up in Q4 2024 and into fiscal 2026
Nvidia‘s shares have jumped 25% in the past month, surging close to an all-time high. The graphics chipmaker has been the biggest winner from the rapid growth of artificial intelligence (AI), as demand for its graphics processing units (GPUs) skyrockets. Nvidia is poised to continue benefiting as major tech firms ramp up AI investments and product launches.
Nvidia’s Meteoric Rise This Year
Nvidia’s stock has climbed over 165% so far in 2024, after more than tripling last year. In August, the company reported second quarter earnings showing 122% revenue growth and net income more than doubling to $6.6 billion. Nvidia also issued stronger-than-expected guidance for the current quarter, expecting to ship billions in its new Blackwell AI chip. Demand is so high that Nvidia anticipates shipments of its current Hopper chip will increase over the next two quarters.
Major Tech Firms Driving Demand
Top AI adopters like Meta, Alphabet, Microsoft, Oracle and OpenAI continue to release new technologies and products enabled by Nvidia’s GPUs. “We see NVDA remaining the leader in the AI training and inference chips for Data Center applications,” noted analysts at Mizuho. The firm estimates Nvidia holds about 95% market share in the space. Production for Nvidia’s next-gen Blackwell chip will ramp up in Q4 and continue accelerating through fiscal 2026.
Conclusion
With Nvidia maintaining its dominant position in AI chips, the company looks poised to continue benefiting as more major players ramp up investments in the space. While risks exist around potential export restrictions and geopolitical issues, demand for Nvidia’s GPUs shows no signs of slowing. Heading into tech earnings season, Nvidia remains a top way to invest in the future of artificial intelligence.
