Nvidia stock heads for new all-time high
Nvidia shares are soaring again, edging closer to an all-time high. Investors are riding a wave of relief after Nvidia quelled fears about product delays and long-term growth.
The stock is up 13% so far this month and could soon hit its first record close since June. It’s currently the second-best performer in the S&P 500 Index for 2024.
The rally comes on the heels of positive updates from CEO Jensen Huang. Its newest chip, Blackwell, is finally in full production after several delays.
Huang’s bold statement that demand is “insane” erased earlier market jitters, giving investors a sigh of relief. It even prompted Morgan Stanley analysts to report that Blackwell’s orders are already booked for the next 12 months.
Business is “robust” with visibility extending far into the future, they said. Nvidia shares are up 2.2% so far today.
AI Demand Drives Nvidia Stock Rally
Major companies including Microsoft are continuing their AI initiatives, reinforcing Nvidia’s lead in the space.
Microsoft alone is expected to increase its capital expenditures (capex) by a whopping 30% to about $58 billion in fiscal 2025. As AI continues to dominate technology spending, Nvidia will continue to profit handsomely.
