Nvidia’s Winning Streak Matches Record, Adds $220 Billion in Market Value

Nvidia Stock

Nvidia Corp. (NASDAQ:NVDA) is experiencing a remarkable 10-session winning streak, marking its longest series of advances since December 2016. The Santa Clara-based chipmaker’s shares have surged over 1% in Tuesday’s trading, contributing to a 22% climb during this streak and adding an impressive $220 billion in market value, according to Bloomberg data. This surge coincides with Nvidia’s announcement of updates to its artificial intelligence processors, reinforcing its status as the world’s most valuable chipmaker.

Nvidia’s stock performance in 2023 has been exceptional, rallying approximately 240%, making it the best-performing component on both the Nasdaq 100 and S&P 500 indexes. The company’s dominance in artificial intelligence has left rivals scrambling to develop alternatives to challenge its position.

The recent rally is partly attributed to the unveiling of Nvidia’s updated chip, the H200, which incorporates high-bandwidth memory, or HBM3e. This enhancement enables the chip to handle large datasets crucial for AI development and implementation. Analysts view this move as evidence of Nvidia accelerating its product cadence in response to the growing AI market and performance requirements, thereby expanding its competitive advantage.

Chris Caso, an analyst at Wolfe Research, observed, Historically, NVDA has not updated its previous datacenter GPUs. Therefore, this serves as additional proof of NVDA hastening its product release schedule in response to the expanding AI market and heightened performance demands, thereby strengthening its competitive advantage.

The existing version of Nvidia’s AI accelerator is already in high demand, and the updated H200 is expected to launch in mid-2024, boasting high-bandwidth memory and potentially becoming the top-performing GPU on the market, setting a higher standard for competition.

Despite facing pressure last month due to new U.S. rules restricting the sale of its advanced AI chips to China, Nvidia’s winning streak reflects renewed optimism in technology stocks amid hopes that Federal Reserve interest rates have peaked. The company is set to report earnings on November 21.

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