NVIDIA’s stock just hit a record high, closing at $138.07. If you’re wondering why this is significant, let me take you through a clearer view of what’s happening.
NVIDIA is now the second most valuable company in the U.S., with a market cap of $3.4 trillion, right on the heels of Apple. In simpler terms, NVIDIA’s meteoric rise is no accident—it’s tied to something much bigger: artificial intelligence, or AI for short.
And here’s why that matters.
Why NVIDIA stock is climbing the charts
NVIDIA’s surge in stock value (180% in 2023 so far) is because it controls a staggering portion of the AI chip market—anywhere from 70% to 95%, depending on whose numbers you trust. What does that mean for you? Well, nearly every major AI development you’ve heard about—think OpenAI’s ChatGPT, self-driving cars, or the AI systems running complex data centers—is powered by NVIDIA’s technology.
AI Is feeding NVIDIA’s growth (and its next moves are already sold out)
OpenAI, the company behind ChatGPT, just secured a massive $6.6 billion funding round. Why does this matter for NVIDIA? Because OpenAI is buying up NVIDIA’s AI chips like there’s no tomorrow. In fact, CEO Jensen Huang recently said NVIDIA’s next-generation Blackwell chips are already sold out for the next 12 months. Think about that: products that aren’t even out yet have waiting lists. That’s what we’d call “insane” demand, as Huang himself put it.
Companies like Microsoft, Meta, and Amazon are pouring billions into their AI infrastructure, all of which requires NVIDIA’s chips. AI is a long-term growth driver, and NVIDIA is perfectly positioned to ride that wave.
China tightens grip on AI chip market, targeting NVIDIA’s influence
The company is playing an intricate game on the global stage. Recently, NVIDIA partnered with Foxconn to build Taiwan’s largest supercomputer. At the same time, Foxconn is setting up a megafactory in Mexico to assemble NVIDIA’s servers, reducing NVIDIA’s reliance on China in a time of trade tensions between the U.S. and China. This diversification is a strategic masterstroke.
Why is this significant? Simple. NVIDIA is ensuring its supply chain is robust enough to meet global demand, while also hedging its bets against geopolitical risks.
Now, not everything has been smooth sailing for NVIDIA. Earlier this year, its stock stumbled a bit after missing some earnings expectations. That’s bound to happen when the hype train is moving at 100 miles per hour. Add in a subpoena from the U.S. Department of Justice over concerns about trade with China, and there were a few rocky months.
Why you should keep an eye on NVIDIA
At this point, you might be wondering, “Is NVIDIA really about to overtake Apple as the world’s most valuable company?” Well, with a market cap of $3.4 trillion, it’s getting closer by the day. Apple’s still ahead at $3.5 trillion, but NVIDIA’s rapid ascent makes it a serious contender for the top spot. Over the past year, NVIDIA, Apple, and Microsoft have been playing musical chairs with the top three spots on Wall Street. NVIDIA’s rise tells us something important about the future of technology.
So, if you’re thinking long-term, NVIDIA is a company worth watching. The AI boom is far from over, and NVIDIA’s hardware is essential to that growth. For investors, that means NVIDIA might still have plenty of room to climb, despite its already impressive gains.
NVIDIA stock price
According to TradingView, NVIDIA recently reached an all-time high stock price of $139.42. As of the most recent data, NVIDIA’s stock is trading around $136.71.
What comes next?
With NVIDIA’s Blackwell chips sold out for a year and demand for its AI infrastructure growing every day, the future looks bright for the chipmaker. Wall Street analysts are already predicting billions in revenue from NVIDIA’s next-generation technology, and that doesn’t even account for the sustained demand for its older GPU models.
Disclaimer: The information provided in this article is for informational and educational purposes only and should not be construed as financial or investment advice. While the data discussed pertains to NVIDIA’s stock performance and market trends, readers should not interpret this as a recommendation to buy, sell, or hold any securities.
Featured image credit: Kerem Gülen/Midjourney
