Jensen Huang, co-founder and CEO of Nvidia, speaks during an event in Taipei, Taiwan, on June 2, 2024.
Annabelle Cheh | Bloomberg | Getty Images
Nvidia Stocks closed at a record high on Monday as Wall Street braced for earnings season and updates from all of the chipmaker's major clients on their planned spending on artificial intelligence infrastructure.
The stock rose 2.4% to close at $138.07, surpassing its previous high of $135.58 on June 18. Shares are now up nearly 180% for the year and are up more than nine-fold since the start of 2023.
Nvidia, widely seen as the company selling the picks and shovels for the AI gold rush, has been the biggest beneficiary of the generative AI boom, which began with the public release of OpenAI's ChatGPT in November 2022. Nvidia's graphics processing units, or GPUs Graphics processing, used to create and deploy advanced AI models that power ChatGPT and similar applications.
Companies including Microsoft, dead, Google and Amazon They are buying Nvidia GPUs in huge quantities to build increasingly large clusters of computers for their advanced AI work. All of these companies are scheduled to announce their quarterly results by the end of October.
Of the billions of dollars that big tech companies spend annually on building AI, a significant amount goes to Nvidia, which controls about 95% of the market for AI training and inference chips, according to analysts at Mizuho.
Nvidia's revenue has doubled in each of the past five quarters, and at least tripled in three of those periods. Growth is expected to slow modestly through the rest of the year, with analysts expecting an expansion of about 82% to $32.9 billion in the quarter ending in October, according to LSEG.
Nvidia recently said demand for its next-generation GPU AI called Blackwell is “insane” and it expects billions of dollars in revenue from the new product in the fourth quarter.
With a market capitalization of $3.4 trillion, Nvidia is the second-largest publicly traded U.S. company by value apple About $3.55 trillion.
