Shares of Nvidia closed at their highest ever on Monday, putting the heavyweight AI chipmaker on the brink of dethroning Apple as the world's most valuable company.
With investors betting on strong demand for its current and next-generation AI processors, the Santa Clara, California company's stock climbed 2.4% to end the day at $138.07.
In June, Nvidia briefly became the world's most valuable company. It was overtaken by Microsoft, and the tech trio's market capitalizations have been neck-and-neck for several months.
The latest gains lifted Nvidia's market value to $3.39 trillion, just below Apple's $3.52 trillion value and above Microsoft's $3.12 trillion.
Nvidia has been Wall Street's biggest winner from a race between Alphabet Microsoft, Amazon and other major tech companies to dominate emerging AI technology.
"We believe the major companies in AI ... face an investment environment characterized by a Prisoner's Dilemma — each is individually incentivized to continue spending, as the costs of not doing so are (potentially) devastating," TD Cowen analysts wrote in a report on Sunday.
TD Cowen reiterated its $165 price target for Nvidia, which it called its "Top Pick", and it said demand for the company's current generation of AI chips remained strong.
Nvidia in August confirmed reports that a ramp-up in production of its upcoming Blackwell chips was delayed until the fourth quarter but downplayed the impact, saying customers were snapping up existing chips.
As investors gear up for quarterly reporting season, Apple rose almost 2% and Microsoft added 0.7%, helping propel the S&P 500 up 0.8% to its own record-high close.
Nvidia, Apple and Microsoft account for about a fifth of the S&P 500's weight, giving them a hefty influence in the index's day-to-day gains and losses.
Taiwan Semiconductor Manufacturing Co the contract manufacturer that produces Nvidia's processors, is expected to report a 40% leap in quarterly profit on Thursday, thanks to soaring demand.
Analysts expect spending to build out AI data centres will help Nvidia's annual revenue more than double to nearly $126 billion, according to LSEG data.
While Nvidia's rally has lifted the S&P 500 to record highs, investors worry optimism about AI could evaporate if signs emerge of a slowdown in spending on the technology.
Latest Stories
-
Mr. Samuel Kabenla Ackah Snr.
2 mins -
Bawumia to launch Ghana’s E-Health, Africa’s first electronic management system for patients
20 mins -
JoySports Invitational: Aramex pumped up ahead of event slated for October 26
21 mins -
DreamOval Foundation, partners launch GSTEP 2025 to empower Ghana’s future STEM innovators
49 mins -
Goil probes claims of fuel pump tampering at Atimpoku branch
50 mins -
Savannah Region has every reason to be happy about my presidency – Akufo-Addo
51 mins -
NDC lays former propaganda secretary to rest
2 hours -
Girls still face societal barriers in accessing fields in TVET, stakeholders say
2 hours -
Mpraeso MP dismisses Haruna Iddrisu’s appeal for independent NPP MPs to resign
2 hours -
GAWU urges government to raise farmgate cocoa prices to curb smuggling
2 hours -
Ghanaian students arrested over alleged transcript forgery make court appearance in US
2 hours -
It never happened – Owusu Bempah denies anointing Bawumia amid Wontumi’s claims
2 hours -
Stone blasting incident that killed 3 and injured 39 was accidental – Ministry
2 hours -
Don’t politicise galamsey fight – Akufo-Addo urges Ghanaians
3 hours -
US mulls capping Nvidia AI chips exports to some countries, Bloomberg News reports
3 hours