- Wednesday, October 16, 2024
Nvidia Corp. is making waves as its shares continue to climb, putting them on track for their longest winning streak in nearly seven years. The chip giant recently unveiled its latest artificial-intelligence (AI) chip, the H200, which boasts significant performance improvements over its predecessor.
The H200 stands out as the first graphics-processing unit from Nvidia to feature HBM3e memory, providing greater bandwidth and capacity. This development emphasizes the crucial role that memory plays in next-gen AI workloads, as noted by Wells Fargo analyst Aaron Rakers.
As of midday trading on Monday, Nvidia shares were up 1.1%, poised to extend their winning streak to nine consecutive sessions. If the stock closes positively for the day, it will mark Nvidia's longest winning streak since December 27, 2016, when it rose for ten trading days in a row, according to Dow Jones Market Data. This impressive run has seen the stock surge nearly 20%.
Nvidia shares are currently trading at $488.56, roughly 1% below their all-time closing high of $493.55, achieved on August 31. Analyst Jordan Klein from Mizuho weighed in on the recent rally, observing that the gains in Nvidia, Broadcom Inc., and Taiwan Semiconductor Manufacturing Co. Ltd. shares appeared to reflect traction among long-only investors and retail buyers. Conversely, gains for Advanced Micro Devices Inc. and chip-equipment shares seemed more like a short squeeze.
Year-to-date, Nvidia's shares have experienced a remarkable surge of 240%. The company is scheduled to release its fiscal third-quarter earnings on November 21, after the closing bell.
Opinion: Investors may be overlooking a risk in this Nvidia partner having seen its stock surge 200% this year.
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