Nvidia’s stock has climbed 25% over the past month, approaching record highs ahead of key tech earnings reports from top clients, including Meta, Microsoft, and Alphabet. These companies are expected to reveal their upcoming investments in artificial intelligence, driving strong demand for Nvidia’s graphics processing units (GPUs).
Following a sharp dip in late August and early September, Nvidia’s shares have rebounded, closing at $132.65 on Wednesday, close to its all-time high of $135.58, achieved in June. This surge has pushed Nvidia past Microsoft, making it the second most valuable company globally, behind only Apple.
Nvidia has been a major winner of the ongoing AI boom, with major tech firms like Meta, OpenAI, Alphabet, Microsoft, and Oracle investing heavily in its GPUs. In August, Nvidia reported a 122% year-over-year revenue increase in its fiscal second-quarter earnings, with net income more than doubling to $16.6 billion. The company also issued stronger-than-expected guidance for the next quarter, projecting multi-billion-dollar shipments of its upcoming Blackwell AI chip. Additionally, Nvidia expects demand for its current Hopper chip to grow over the next two quarters.
Mizuho analysts noted Nvidia’s dominant position in AI chips for data centers, estimating the company controls 95% of the market. They set a price target of $140 for the stock, while warning of potential risks tied to escalating export restrictions to China, geopolitical tensions around Taiwan, and possible reductions in AI server spending.
CEO Jensen Huang highlighted the unprecedented demand for the new Blackwell chip, priced between $30,000 and $40,000 per unit, with production slated to ramp up in Q4 and continue through fiscal 2026. Nvidia’s stock also got a boost after Huang completed a stock sale on Sept. 23, leading to a 4% jump in share price.
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