Nvidia Stock Hits Record High Amid AI Chip Demand Surge
Nvidia's stock closed at a record high, driven by strong demand for AI chips and positive earnings from Intel.
Nvidia's stock closed at a record high on Friday, reaching $208.27 per share, a 4.3% increase from the previous day. This surge pushed the company's market capitalization past $5 trillion, reflecting robust demand for artificial intelligence (AI) chips. Nvidia's graphics processing units are integral to AI services provided by major tech companies such as Google, Microsoft, Meta, and Amazon.
The rally was further bolstered by Intel's strong first-quarter earnings report released on Thursday. Intel's stock spiked 24%, marking its best performance since 1987. CEO Lip-Bu Tan stated, "Q1 results demonstrate continued and steady progress across the business, reflecting strong demand for our products and disciplined execution to expand available supply."
Other semiconductor companies also experienced gains. Advanced Micro Devices (AMD) rose 14%, while Qualcomm climbed 11%. The Nasdaq Composite Index increased by 1.6% to 24,836.60, driven by the semiconductor sector's performance.
Despite the positive momentum, Nvidia faces increasing competition in the AI chip market. Alphabet, a major Nvidia customer, announced plans to introduce new chips for its cloud customers later this year, potentially challenging Nvidia's dominance in the sector.