Nvidia Stock Nears Record High as AI Boom Pushes Growth

Nvidia stock is on the verge of hitting a record high as investors continue to bet on the booming artificial intelligence sector, potentially positioning the chipmaker to overtake Apple as the most valuable company in the world. Shares rose over 3% on Monday, pushing the stock above $138, surpassing its previous record closing price of $135.58 from June. Nvidia’s stock has seen steady gains throughout October, including six consecutive days of growth.

OpenAI Funding Boost Drives Nvidia Stock Surge

The upward trend began on October 2, following news of OpenAI’s $6.6 billion funding round. As OpenAI ramps up its AI operations, it will rely heavily on Nvidia’s AI chips, funneling much of that funding back to the chipmaker. This development added fuel to Nvidia’s stock rally, with analysts reiterating their Buy ratings on Nvidia shares.

Nvidia's Blackwell Chips Lead to Record Revenues

Wall Street analysts have also pointed to the strong performance of Nvidia’s new Blackwell chips as a key driver of the company’s rise. KeyBanc’s report estimates that Nvidia’s Blackwell chip sales will generate $7 billion in the fourth quarter alone, while demand for older GPUs remains robust. A potential new wave of funding for AI startups is expected to further boost Nvidia’s revenues.

Foxconn Partnership and Global Expansion

At the company’s AI Summit in Washington, D.C., Nvidia demonstrated the strength of its software and AI capabilities. On the same day, Nvidia and Foxconn announced plans to build Taiwan’s largest supercomputer in Taipei, and assemble Nvidia’s servers using Grace Blackwell chips at a new megafactory in Mexico. This move helps Nvidia diversify its production away from China amid ongoing trade tensions.

Nvidia's Climb Toward the Top

As of Monday morning, Nvidia's market cap stood at $3.4 trillion, just shy of Apple’s $3.5 trillion. The two companies, along with Microsoft, have traded places as the world’s most valuable company throughout the year. Nvidia’s ascent follows a volatile period after its second-quarter earnings report and concerns about trade disruptions with China.

Semiconductor Sector Momentum Adds to Nvidia’s Growth

The broader semiconductor sector has also experienced positive momentum, which has helped Nvidia’s rise. TSMC, one of Nvidia’s key chip manufacturers, reported better-than-expected sales, signaling strong AI demand. Industry sales rose 28% in August compared to last year, driven by surging demand for AI chips and data center hardware.

Continued AI Growth Expected for Nvidia

Analysts remain bullish on Nvidia’s future prospects. Patrick Moorhead, CEO of Moor Insights and Strategy, emphasized that AI spending is far from slowing down, predicting continued growth in AI data center trades over the next year. Nvidia is set to report earnings on November 19, with Wall Street expecting a staggering 82% revenue growth compared to the previous year.

What This Means for Stocks and the AI Industry

Nvidia’s stock surge highlights the growing importance of AI across industries, positioning the company as a key player in the tech sector’s future. As demand for AI chips continues to rise, Nvidia’s dominance could further shape the semiconductor industry and spark increased investment in AI-related technologies. This momentum could also lead to sustained growth for AI-driven companies, making the AI sector a key focus for investors moving forward.