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Nvidia's Stock Skyrockets on AI Chip Demand Surge and Big Tech Orders

AInvestThursday, Oct 17, 2024 12:00 pm ET
1min read

Nvidia Corp.'s shares have reached new highs as enthusiasm for artificial intelligence reignites among investors, surpassing previous peaks from June.

Amid a backdrop of renewed AI trades, Nvidia’s stock saw a notable rally, climbing over 14% this month. This resurgence came after CEO Jensen Huang announced that the Blackwell chip is now in full production, addressing earlier delays that had worried investors.

The stock briefly touched an intraday high of $140.89, surpassing the June record of $140.76, driven by an upswing in demand for AI technologies. Market optimism was further fueled by reports of robust forward bookings for Blackwell, securing Nvidia's reputation as a leading AI investment.

With significant orders from tech giants like Microsoft, Meta, Google, and Amazon, Nvidia's GPUs are essential to building expansive computing infrastructures for advanced AI operations. These companies are set to reveal their quarterly results by the end of October.

Nvidia has remarked on the “insane” demand for its next-gen AI GPUs, forecasting them to generate substantial revenue in the coming quarter. The positive sentiment across the market was also reflected in option trades, signaling investor confidence in continued growth.

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