Nvidia’s stock price surpassed $144 during Friday’s trading, pushing its market value to $3.53 trillion, surpassing Apple’s $3.52 trillion and becoming the world’s most valuable company. What are the factors behind Nvidia’s soaring stock price?
Summary:
Nvidia’s market value exceeds $3.5 trillion, becoming the “second in history”! Bank of America Merrill Lynch raises target price to $190, surpassing Apple?
Background:
Worldcoin collaborates with NVIDIA to launch the new generation Orb! Renamed as World Network, it announces its landing in Taiwan.
Table of Contents:
1. Nvidia’s market value reached $3.53 trillion
2. Tesla increases procurement of Nvidia chips
3. Experts optimistic about Nvidia stock continuing to rise
After the electric vehicle manufacturing leader Tesla announced its impressive third-quarter financial report, its stock price surged by 22% on Thursday and continued to rise by 3.36% on Friday, driving the overall increase in technology stocks and pushing the Nasdaq index to a new high.
Inspired by this, Nvidia, the supplier of chips to Tesla, also performed impressively, with its market value surpassing Apple’s and becoming the world’s most valuable company on Friday.
According to Yahoo Finance data, Nvidia’s stock price reached a high of over $144 during trading on the 25th, pushing its market value to $3.53 trillion, surpassing Apple’s $3.52 trillion. However, Nvidia’s stock price slightly fell to $141.54 at the close, reducing its market value to $3.47 trillion, while Apple’s stock price increased by 0.4%, maintaining its market value at $3.52 trillion and reclaiming the top spot in market value.
In fact, Nvidia briefly became the world’s most valuable company in June this year, but was quickly surpassed by Microsoft and Apple. The market value rankings of these tech giants have been continuously changing recently.
One of the reasons behind Nvidia’s strong stock price increase may be related to Tesla’s plans to significantly expand its AI capacity to support its self-driving system training. CEO Musk stated at the earnings conference that the Texas Super Factory currently has 29,000 sets of Nvidia H100 chip AI servers installed and plans to add over 70% more by the end of October, reaching a total of 50,000 sets, which will be used to train Tesla’s Full Self-Driving (FSD) AI system.
Musk previously revealed that Tesla plans to invest $10 billion in AI-related capital expenditures this year, with half of the funds allocated to internal development, focusing on self-designed AI inference computers, vehicle sensors, and the supercomputer “Dojo”. To fund these developments, Tesla spends about two-thirds of its budget on purchasing Nvidia chips.
In addition, Western Digital, a major memory manufacturer, announced better-than-expected quarterly earnings, boosting market optimism for data center demand and driving the strength of Nvidia and other semiconductor stocks. The Philadelphia Semiconductor Index rose 55.22 points or 1.07% on Friday, closing at 5212.83 points.
With the increasing demand for Nvidia AI chips from Tesla and the global market, Nvidia’s stock price has repeatedly reached new highs.
Russ Mould, Investment Director at stockbroking service company AJ Bell, holds an optimistic outlook for Nvidia’s future. He pointed out:
Economist Brian Jacobsen also added that Tesla’s data reignited investors’ optimism, indicating that the rise of the tech giants may not be over yet.
Looking ahead to next week, the market will focus on a series of important events, especially the October non-farm payroll data in the United States and the financial reports of the five major companies in the tech giants, including Alphabet, Amazon, Apple, Meta, and Microsoft. This information will reveal whether the U.S. economy is facing the risk of a recession and may provide signals for the future policies of the Federal Reserve.
If the performance of tech stocks continues to be impressive, it may further boost Nvidia’s stock price.