Nvidia’s stock surged 6.98% the 28 May to $1,139.01, marking its third consecutive session of gains since the release of its quarterly results. The AI applications chip specialist now boasts a market capitalization of $2.75 trillion, surpassing the entire German stock market. Furthermore, Nvidia’s stock is now just 5% away from matching the value of the world’s second-largest company, Apple.
Exceeding Expectations
Not only did Nvidia’s results and forecasts exceed expectations, but the company also highlighted that demand would remain higher than supply for much of the next year. This pivotal moment comes after Elon Musk’s AI startup, xAI, announced on Sunday that it had raised $6 billion in a Series B funding round, boosting Nvidia’s stock by 8% on the next trading day.
AI Investment Boom
The wave of investments in AI continues to bolster optimism about Nvidia’s growth rate as the chipmaker continues its record-breaking stock rally. Last week, Nvidia announced its first-quarter results, significantly outperforming Wall Street’s expectations with adjusted earnings up 461% year-over-year, while revenues increased by 262%.
Future Prospects with xAI
According to The Information, Musk plans to use Nvidia chips for a new “supercomputer” that will power xAI’s chatbot named Grok. “xAI will continue on this rapid progress trajectory over the coming months, with many exciting technological updates and products soon to be announced,” sources indicated.
Positive Semiconductor Market Trends
Additionally, the semiconductor market showed a positive trend this 28 may despite a generally bearish market. Other companies in the sector also saw gains: Broadcom rose by 0.33%, AMD by 3.16%, and Qualcomm by 1.3%.
Dominating the Tech Market
This resurgence in the semiconductor industry, coupled with the AI boom, places Nvidia in an exceptionally favorable position to continue dominating the global tech market.
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