Nvidia (NVDA) Stock Approaches New High Amid Chip Rally

Jaxon Gaines
nvidia us stocks market
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Nvidia (NVDA) is trading near a new all-time high on Wednesday, amid a resurgence in demand for its computer chips. The Nvidia corporation is among the most sought-after US stocks, as it has delivered nearly 165% profits year-to-date. Investors picked up the stock at every dip, enjoying its gains over the last two years. In the last five years alone, Nvidia stock has surged 2,646%, making investors’ portfolios swell with massive gains.

NVDA stock has gained 10% in the last five trading sessions. At press time, the stock is trading at 131.95 per share. NVDA is close to its record closing high of $135, but is down a point since the weekend.

Q4 is about to enter its middle stage, with investors keen to explore assets and shares that may help their portfolios rise. NVDA reaching a new high would certainly be a plus for holders. Furthermore, many experts say that holding onto Nvidia stocks through this potential ATH could bring even further gains. Ben Reitzes from Melius Research wrote that Nvidia shares could reach the $150 mark during Q1 of 2025. “We expect things to perk up more into year-end given indications for strong AI spending on training and inferencing, still driven by Nvidia,” Reitzes wrote. The analyst also labeled Nvidia “the second cheapest US stock in our group on a (price-to-earnings-to-growth) basis.”

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What is Sparking Nvidia NVDA Price?

Source: Wccftech

The latest sales figures from Taiwan Semiconductor Manufacturing Co are the likely culprit for NVDA’s recent gains. The chip manufacturing company reported a 40% year-over-year rise in its September sales as demand for AI microchips continues to climb. In addition,
Officials at Taiwan Semiconductor have announced plans to double their chipmaking capacity to meet global demand.

At the same time, the news of Meta exploring Nvidia’s GPUs is also gaining momentum in the market. If the news materializes in the long run, it can boost the NVDA stock price significantly.

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Furthermore, Nvidia is gearing up to launch its Blackwell technology in 2025. This update is bound to give a boost to the firm’s revenue and earnings as this year concludes and we enter Q1 2025. Per Nvidia’s CEO Jensen Huang, Blackwell is all set to provide 3 to 5 times more AI output, which may revolutionize the AI tech industry, taking it to another level.