Nvidia shares reach record intraday high, market value climbs to $5.7 trillion
Nvidia's stock rose to $237.55 on Friday, pushing its market capitalization to $5.7 trillion as the company reported strong earnings and a bullish outlook for the next quarter.
Nvidia's shares climbed to $237.55 in early trading on Friday, surpassing the previous intraday peak of $235.54 and lifting the company's market value to about $5.7 trillion. The surge follows the chipmaker's second-quarter earnings release, which showed revenue of $96.2 billion and an outlook for third-quarter sales between $105.8 billion and $110.1 billion, both above analysts' expectations.
The company attributes the momentum to sustained demand for artificial-intelligence infrastructure, as its graphics processing units and related hardware are widely used in AI applications. CEO Jensen Huang has become a prominent figure in the AI sector, frequently appearing at high-profile events and meeting with international leaders.
Analysts note that Nvidia operates in a competitive landscape, with rivals such as AMD launching comparable rack-scale systems and major cloud providers like Amazon and Google developing their own custom chips. Concerns have also been raised about "circular investing," where Nvidia funds its customers who subsequently purchase more of its products.
"We expect strong demand for our AI solutions and remain confident in our growth trajectory," Huang said in the earnings call.
The stock's performance comes amid broader market debate over the sustainability of AI-related investments, a discussion that intensified after the launch of OpenAI's ChatGPT in 2022.