NVIDIA Stock Soars 4.14% Amidst Chip Demand Surge and Sets New High Since June 2024

NVIDIA's stock recently surged by 4.14%, continuing a four-day rally with a 9.20% increase, marking a new high since June 2024. The impressive growth is largely attributed to the skyrocketing orders for its latest Blackwell GB200 chip. According to analysts, Microsoft has emerged as the largest customer for these chips, with orders increasing three to four times this quarter, highlighting the global demand for NVIDIA's cutting-edge technology.

Expectations are high within the industry for the Blackwell chip's production capacity to expand by early Q4 2024. Current projections suggest shipments could reach 15,000 to 20,000 units by the end of 2024, with potential growth of 200% to 250% in Q1 2025. This trend sets the groundwork for NVIDIA's sustainable long-term growth.

NVIDIA's founder and CEO, Jensen Huang, has expressed optimism about the future demand for Blackwell chips. As the artificial intelligence and graphics processor market experience unprecedented demand, the company is poised to meet its ambitious sales targets.

Wall Street remains bullish on NVIDIA's prospects. Financial institutions have revised their earnings forecasts, expecting EPS to grow between 13% to 20% over the next two years. Compared to its peers, NVIDIA's valuation remains attractive, with technological advancements drawing significant investor interest.

One analyst emphasized that the rapid adoption of AI technology boosts demand for high-performance computing, with NVIDIA maintaining its leadership position. This surge in demand is likely to generate billions in revenue for the company.

Investor enthusiasm extends beyond stock performance, positively influencing the broader tech sector. Companies like Microsoft and Apple also benefit from this momentum, although their valuations have not reached historic peaks.

Despite NVIDIA's achievements, market experts caution investors to remain vigilant about potential risks. Given heightened market volatility, price fluctuations could challenge stable returns.

In summary, NVIDIA's advancements in high-performance computing and AI technology showcase its innovative prowess and competitiveness. As new chip products and market expansions continue in the coming quarters, NVIDIA is set to lead the tech stock growth trend.