By Nvidia stock (NVDA) is on track to notch a record high as investors continue to bet on the artificial intelligence boom, placing the chipmaker in contention for the top spot as Wall Street’s most valuable company.
Shares rose over 3% morning trading Monday to above $138. Nvidia previously hit a record closing price of $135.58 in June.
Nvidia stock has risen sharply in October, at one point posting six consecutive days of gains.
The stock’s climb began Oct. 2 following the announcement of a massive, $6.6 billion funding round for ChatGPT-maker OpenAI. Much of that funding will be funneled back to Nvidia, as OpenAI’s growing energy demands will require more of its AI chips.
Nvidia shares continued their upward trajectory, fueled by a barrage of good news for the AI chipmaker. Wall Street analysts last week reiterated their Buy ratings on Nvidia shares. KeyBanc released a report estimating that Nvidia revenues from its new Blackwell chips alone will reach $7 billion in the fourth quarter, while demand for its older GPUs “remains extremely robust.” A potential new wave of funding for AI startups would add to Nvidia’s coffers as well, Wedbush analysts said Tuesday.
Nvidia also showcased the strength of its software offerings during its AI Summit in Washington, D.C. The same day, Nvidia and Foxconn announced plans to build Taiwan’s largest supercomputer during Foxconn’s annual technology showcase event in Taipei. Foxconn also provided details about a mega-factory it’s building to assemble Nvidia servers using its Grace Blackwell chips in Mexico, reducing Nvidia’s reliance on China amid heightened trade tensions.
Nvidia’s gains on Monday also put it closer to unseating Apple as the world’s most valuable company. The chipmaker’s market cap stood at $3.4 trillion Monday morning, while Apple’s was $3.5 trillion. Apple, Microsoft, and Nvidia have traded places as the top three companies over the past year.
