The stock price of Nvidia, the leading company in artificial intelligence (AI) chips, surpassed $140 for the first time ever, reaching an all-time high.
On the 21st (local time) at the New York Stock Exchange, Nvidia's stock price rose 4.14% from the previous trading day to $143.71. This is the first time Nvidia's stock price has closed above $140. Its market capitalization also grew to $3.525 trillion, closely trailing the top market cap holder Apple ($3.595 trillion).
Nvidia's stock price has risen for four consecutive trading days ahead of earnings announcements later this month from major customers such as Microsoft (MS), Google, Meta, and Tesla. These companies, key customers of Nvidia's latest AI chips, are expected to increase their AI investments, raising expectations that Nvidia may deliver another surprise earnings report.
Nvidia's latest AI chip, Blackwell, which entered mass production in the fourth quarter, is reportedly already sold out for a year's supply. Jensen Huang, Nvidia's CEO, said in early this month on the U.S. economic media CNBC, "We are fully producing Blackwell and progressing as planned," adding, "The demand for Blackwell is insane."
Additionally, TSMC, which exclusively manufactures Nvidia's latest AI chips, announced third-quarter earnings on the 17th that exceeded market expectations. TSMC reported a net profit of NT$325.26 billion for the third quarter, a 54.2% increase compared to the same period last year.
In response, investment banks (IBs) have been raising their target prices for Nvidia consecutively. On the 18th, Bank of America projected that AI chip demand will continue for the time being and set Nvidia's target stock price at $190, $25 higher than the previous $165.
Analyst Vivek Arya explained in a report that "the strong third-quarter performance of TSMC, the world's largest foundry (semiconductor contract manufacturer), and Jensen Huang's statement that 'demand for Blackwell is insane' have recently boosted industry sentiment and raised expectations for Nvidia's future."
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