The S&P 500 hit a new all-time high, driven by Nvidia's strong performance after comments from the company's CEO. Despite tech's recent lag, cyclical sectors like financials, industrials, and consumer discretionary are now leading, indicating a broadening market and economic strength.
Sarah Kunst Managing Director at Cleo Capital, explains Nvidia's stock surge, driven by limited investment options and CEO Jensen Huang's leadership.
The company's shares were suffering in early premarket trading Tuesday.
NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) shares jumped 2.4% to reach a new record closing high on Monday night, valuing the business at $3.39 trillion. The chipmaker, which capped off a 40% rebound from its recent share price low in early August, closed the gap on Apple's $3.52 trillion valuation and extended the distance from Microsoft's $3.12 trillion.
Nvidia's AI boom boosts global chip stocks, with Intel and TSMC hitting highs. Banking stocks also rally as earnings reports loom.
Nvidia's share price has been stagnant over the past three months, but recently shares came close to a break-out. The publication of Q3 earnings in November, where guidance for the Q4 quarter will be revealed, could provide the needed inflection point to get over the $140 mark. Current market estimates call for a seemingly conservative Q4, which could lead to a meaningful reset of medium-term expectations if the major beat I expect comes to fruition.
The artificial intelligence (AI) chipmaker could get a boost from a supplier in the space.
Nvidia's gains in share price on Monday lifted its market value to top $3.4 trillion, unseating Microsoft as the second most valuable company on Wall Street, just below Apple's valuation of about $3.55 trillion. Stocks tied to Nvidia suppliers and semiconductor related companies rallied in Asia as the bullish investors sentiment spilled over.
Nvidia shares hit a record high on Monday, closing at $138.07 as Wall Street anticipates earnings updates from Microsoft, Meta, Google and Amazon on their AI infrastructure spending.
U.S. officials have discussed limiting sales of advanced AI chips from Nvidia and other American companies on a country-specific basis, Bloomberg News reported on Monday, citing people familiar with the matter.
'Mad Money' host Jim Cramer looks at Big Tech's bull run after another record day for the market.
Nvidia holds a 90% market share in data center GPUs, driving dominance in AI hardware infrastructure for cloud providers. The AI chipset market is projected to grow at 34% annually from 2024 to 2032, fueling Nvidia's long-term growth. Nvidia's GB200 NVL72 system delivers 30x faster LLM inference, with 4x improvement in training speed and 25x energy efficiency.