Nvidia shares hit all-time high as chipmaker dominates AI market
Nvidia stocks reached a record peak on Tuesday due to increasing anticipation regarding the chip maker's quarterly outcomes. This company has greatly profited from the significant growth in artificial intelligence.
Increasing speculation that Nvidia's revenue goal will once more exceed predictions from financial analysts has propelled the stock up by approximately 19% from its lowest point of the past two months reached last week.
The stock saw a modest gain of 0.4% and settled at $471.55. It reached an all-time high of $481.87 shortly after the market opened, surpassing its previous peak of $480.88 achieved on July 14th.
Experts project that Nvidia, which holds a strong position in the market for chips utilized in driving generative AI such as ChatGPT and similar services, will likely predict a remarkable 110% increase in revenue during the third quarter, amounting to $12.50 billion, when it releases its financial results this Wednesday.
"It could potentially be the most critical report in this period of financial results. We anticipate knowing their ability to continue the exceptional performance they achieved in the previous quarter," stated Dennis Dick, a market structure expert at Triple D Trading.
In May, the company projected its second-quarter revenue to surpass expectations by over 50%. As a result, its market value soared past $1tn, propelling its stock to become the top performer on the S&P 500.
Nvidia's incredibly positive prediction in the previous quarter also ignited a surge in Artificial Intelligence (AI) stocks, as well as prominent technology companies. As a result, it emerged as a significant force behind the upward trend of US stocks this year.
Brian Mulberry, who manages client portfolios at Zacks Investment Management and owns Nvidia shares, stated that in order to maintain the current stock price, it is necessary to observe an improvement in the company's overall financial performance, which would contribute to the increase in share value.
This month, around 19 brokerage firms have increased their target price for Nvidia, bringing the average prediction to $500. This represents a 6.5% boost compared to the stock's previous closing price. The value of Nvidia shares has surged by over three times since the beginning of this year.
According to a report released by Goldman Sachs on Monday, Nvidia experienced the most significant surge in popularity among hedge funds during the second quarter.
"The current driving force behind the market is the story of Nvidia and artificial intelligence. If Nvidia were to fall short of expectations, the market would experience significant distress," expressed Dick.
