Nvidia stock price leaps 24% after AI bet 

Share post:

Nvidia’s stock price increased by 24% in a single day, making it one of the most significant rises for a U.S. stock. The increase is due to Nvidia’s excellent revenue prediction, which highlights AI’s underutilized potential.

This spike nearly quadrupled the stock’s value for the year and lifted Nvidia’s market capitalization to roughly $939 billion. As a result, Nvidia is now larger than Taiwan’s TSMC and ranks behind trillion-dollar firms in the United States such as Apple, Alphabet, Microsoft, and Amazon.

The earnings announcement from Nvidia prompted a rally in the semiconductor industry and AI-focused firms, resulting in stock market gains in Japan and Europe. Except for Amazon, major US technology stocks enjoyed increases ranging from 0.6% to 3.8%, with Advanced Micro Devices Inc closing 11% higher.

Analysts promptly boosted their price forecasts for Nvidia following its impressive performance. Currently, 27 analysts say Nvidia is the main player in the market for processors that support AI services such as ChatGPT, hence pushing AI developments. As a result, the average price goal this year has more than quadrupled, with Elazar Advisors giving a high objective of $644.80, valuing Nvidia at $1.59 trillion, close to Alphabet.

Nvidia’s CEO, Jensen Huang, revealed that the company expects a surge in demand for AI chips, estimating that over $1 trillion worth of current data center equipment will need to be replaced with AI chips. This anticipation arises as generative AI is being integrated into various products and services, highlighting the widespread applications of AI technology.

The sources for this piece include an article in Reuters.

Featured Tech Jobs



Related articles

AI pioneer expresses regret for not prioritizing safety during AI advancement

Professor Yoshua Bengio, a well-known expert in the field of artificial intelligence, has expressed remorse to the BBC...

OpenAI introduces “Shared Links” feature for ChatGPT conversations

OpenAI has introduced "shared links" for its ChatGPT language model. This feature produces a unique URL, allowing users...

VezaDigital names OpenAI as fastest growing website

According to VezaDigital research, OpenAI's website,, is the fastest growing among the top 50 most visited sites...

Vestager aims to establish code of conduct for artificial intelligence

Margrethe Vestager, European Union's tech chief, has announced intentions to publish a draft code of conduct for artificial...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways