Nvidia Inc.’s NVDA shares are hitting new all-time highs on Monday as the stock continues to be a massive beneficiary of increasing AI demand. Here’s what you need to know.
What To Know: Nvidia shares are up over 186% since the start of the year and have increased more than ninefold since the beginning of 2023, shortly after ChatGPT was launched. On Monday, the stock reached a new all-time high above $142 after it took out its previous highs from June last week.
Nvidia has benefited from strong demand for its GPUs, particularly from hyperscalers who are purchasing its chips in massive quantities in an effort to quickly build out data centers with advanced AI capabilities.
The company’s next-generation Blackwell GPU platform is currently experiencing “insane” demand, according to Nvidia CEO Jensen Huang.
Huang said in a CNBC interview earlier this month that Blackwell is in full production and progressing as planned as demand remains off the charts.
"Everyone wants to have the most, and everyone wants to be first,” Huang said at the time.
Investors will get more insight into the ongoing demand for Nvidia chips when some of its biggest customers including Microsoft, Meta, Google and Amazon report earnings over the coming weeks.
Nvidia will also report its fiscal third-quarter financial results on Nov. 20. Analysts are currently forecasting earnings of 74 cents per share and revenue of $32.904 billion, according to estimates from Benzinga Pro.
Last week, BofA Securities analyst Vivek Arya maintained a Buy rating on Nvidia and raised the price target from $165 to $190 after boosting earnings projections for 2025 and 2026. The analyst highlighted recent earnings from Taiwan Semiconductor Manufacturing Company Ltd TSM showing that demand for AI remains robust.
Despite the positive momentum, the company faces potential challenges from new export restrictions, particularly on advanced AI chips to Persian Gulf countries, which has sparked some volatility in the chip sector in recent weeks. The Biden administration has already placed restrictions on AI chip exports to over 40 countries across the Middle East, Africa and Asia in an effort to stop the technology from potentially reaching China.
What Else: Nvidia on Monday announced a partnership with healthcare startup Aidoc to accelerate the adoption of AI in the healthcare industry.
The companies plan to release a new Blueprint for Resilient Integration and Deployment of Guided Excellence in early 2025, aimed at improving clinical workflows and patient care. The guideline will provide a comprehensive, evidence-based framework to help healthcare organizations integrate AI more effectively and scale its use to improve operational efficiency and outcomes.
NVDA Price Action: Nvidia shares were up by 2.95% at $142.08 at the time of writing, according to Benzinga Pro.
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