- Nvidia stock hits record high as key AI player smashes Q3 earnings
- AI-chip demand is soaring and won’t slow down anytime soon
- Analysts update stock price targets for Nvidia and other semiconductor companies due to strong AI growth prospects
Nvidia stock hit a new all-time high on Thursday after the chipmaker reported blowout third quarter earnings. The results highlight Nvidia’s dominant position in AI chips amid soaring demand.
Nvidia Powers Through Supply Chain Challenges
Nvidia told investors it expects revenue to more than double in the fourth quarter compared to a year earlier, even with some delays shipping its new Blackwell processors. The company has navigated supply chain issues better than rivals to capitalize on the AI boom.
AI Spending Going Parabolic
Research firm IDC estimates that generative AI spending alone could top $150 billion by 2027. Total AI spending is on pace to reach $632 billion by 2028, more than double last year’s level. The hyperscalers like Microsoft, Alphabet and Meta are scrambling to invest billions in AI.
Tightening Grip on AI Chip Market
Nvidia sits just below Apple as the world’s second most valuable company thanks to its dominant position in AI chips. The market for AI accelerators that power large language models used by hyperscalers could reach $500 billion in 3 years, per AMD. This sets up Nvidia for massive growth.
Key Supplier TSMC Also Posts Record Results
Taiwan Semiconductor, the key supplier for Nvidia’s AI chips, reported its own blowout quarterly results on Thursday amid the AI boom. TSMC said customer demand is exceeding its ability to supply chips. The results validate surging demand.
Nvidia’s grip on the exponentially growing AI chip market has driven its stock to new heights. With demand still far outpacing supply, Nvidia’s growth story appears nowhere near complete.
