Nvidia, a Californian technology company that produces graphics processors, has closed up 2.4% at $138.07 per share yesterday on Wall Street, exceeding its previous closing high of $135.58 on June 18 and thus recording a new all-time high. The share reached remains slightly lower than its all-time intraday peak of $140.76 marked on June 20th.
Nvidia is up nearly 14% this month and is the second-best performer in the S&P 500 this yeareven in the summer it had retreated from its powerful rally due to potential engineering glitches in its products and doubts about the sustainability of the rally in stocks linked to Artificial Intelligence.
The company led by Jen-Hsun Huang is in fact widely considered the reference company in the “artificial intelligence gold rush”and has been the biggest beneficiary of the generative AI boom, which began with the release of OpenAI’s ChatGPT in November 2022. Nvidia’s graphics processing units, or GPUs, are used to build and deploy advanced AI models that power ChatGPT and similar applications.
The maximum capitalization
The rise of yesterday’s session brought the capitalization by Nvidia a 3.4 trillion dollarsbringing it closer to Appletopping the market capitalization chart at $3.5 trillion, and moving away from third place Microsoft with 3.1 trillion dollars. In June, Nvidia briefly became the world’s most valued company, later overtaken by Microsoft and Apple, with the tech trio’s market caps going neck-and-neck for several months.
The benefits for the sector
Nvidia’s rise dragged the entire sector into yesterday’s session, with thePHLX Semiconductor Sector index – which includes the 30 largest semiconductor companies in the United States – rose 1.8% to its highest in more than 2 months, with the S&P 500 adding 0.77% and the Nasdaq rising gained 0.87%.
The CEO’s statements
Nvidia’s recent strength came after CEO Jensen Huang said his Blackwell chip “is in full production” and that the question for it “is crazy”comments that came after Blackwell was delayed due to engineering snags.
Analysts’ opinions
Analysts also returned positive on the stock. In a report last week, analysts from Morgan Stanley they stated that the Blackwell orders “are booked for approximately 12 months”with “every indication that the business remains strong with very high future visibility.” In the last hours, T. D. Cowen he reiterated his target price of $165 for Nvidia, which has defined its own “Top Picks” in the industry, and said demand for the company’s current generation of AI chips remained strong.
The moves of the US government
Overnight, Bloomberg wrote, citing people familiar with the matter, that US officialsBiden administration they have discussed limiting sales of advanced AI chips of Nvidia and other American companies to certain countries. The new approach would establish a cap on export licenses for some countries in the interest of national security, according to the sources.
