Nvidia Corp. experienced a 2.1% increase in its shares on Tuesday, closing at a record high. This marked the 10th consecutive session of gains for Nvidia, equalling its longest-ever streak of advances. The continued positive momentum reflects investor confidence and interest in the company’s performance and prospects.
Nvidia Corp.’s shares experienced a boost due to an update to its artificial intelligence processors. The Santa Clara, California-based company has seen a 22% climb in its shares during the latest rally, contributing to an increase of about $219 billion in market value. Nvidia’s stock has surged more than 240% this year, making it the best-performing component on both the Nasdaq 100 and S&P 500 indexes, particularly driven by the AI-related frenzy. This latest surge coincides with a broader rebound in technology stocks, driven by optimism that Federal Reserve interest rates have peaked.
Nvidia said its updated chip, called the H200, will get the ability to use high-bandwidth memory, or HBM3e, allowing it to better cope with the large data sets needed for developing and implementing AI.
“NVDA has not refreshed prior datacenter GPUs in the past,” Wolfe Research analyst Chris Caso wrote in a note. closing at a record
“So this represents further evidence of NVDA accelerating their product cadence in response to AI market growth and performance requirements, which further expands their competitive moat.”
The current version of the Nvidia processor, known as an AI accelerator, is already in high demand.
“The company’s accelerated product-launch pace with H200 in mid-2024 is likely to help defend its turf,” Bloomberg Intelligence analyst Kunjan Sobhani said. “The new AI processor comes with high-bandwidth memory and could be the top-performing GPU on market, raising the bar for competition.”