Chip maker’s market capitalization exceeds US$3.4 trillion, Nvidia stock price hits record high | Wilnesh News

NVIDIA The stock closed at a record high on Monday as Wall Street prepares for earnings season and comes with the latest news from all of the chipmaker’s top customers on planned spending on artificial intelligence infrastructure.

The stock was up 2.6% at $138.31 as of about 1 p.m. ET. On June 18, the stock’s highest closing price to date was $135.58.

Nvidia, widely seen as the company selling picks and shovels for the AI ​​gold rush, is the biggest beneficiary of the generative AI boom that began with the public release of OpenAI’s ChatGPT in November 2022. Used to build and deploy advanced AI models that power ChatGPT and similar applications.

Companies include Microsoft, Yuan, Googleand Amazon are buying Nvidia GPUs in bulk to build larger and larger clusters of computers for their advanced artificial intelligence work. The companies are all scheduled to report quarterly results at the end of October.

Mizuho analysts said that top technology companies spend billions of dollars every year on artificial intelligence construction, and a large part of it goes to Nvidia, which controls about 95% of the market for artificial intelligence training and inference chips.

Nvidia’s revenue has more than doubled in each of the past five quarters, at least tripling in three of those quarters. Growth is expected to slow slightly for the rest of the year, with analysts expecting growth of about 82% to $32.9 billion in the quarter ending in October, according to LSEG.

Nvidia recently said demand for its next-generation AI GPU, called Blackwell, is “insane” and it expects the new product to bring in billions of dollars in revenue in the fourth quarter.

With a market capitalization of $3.4 trillion, Nvidia is the second most valuable public company in the United States, behind apple Approximately $3.53 trillion.

watch: Nvidia CEO Jensen Huang talks about Squawk Box