Nvidia’s shares rose 2.3% to close at an all-time high, topping $504 on Monday. The record came ahead of the company’s fiscal third-quarter results, scheduled to be released on Tuesday.
Analysts are expecting to see more than 170% growth in revenue with the forecast for the fiscal fourth quarter likely to record an even bigger number at almost 200%, according to LSEG estimation.
Amid the booming technology era, Nvidia’s stock price has risen 245% so far in 2023, outpacing any other member of the US S&P 500. Its market capitalization is now sitting at $1.2 trillion, well above Facebook’s parent, Meta or Elon Musk’s Tesla.
Though, Nvidia is still by far the market leader in GPUs for AI, high prices are an issue. The Bank of America noted that Nvidia must find a solution to counter the narrative of its products being too expensive for generative AI interface.
Last week, Nvidia unveiled its latest flagship chip for AI, called H200, claimed to give better performance than Nvidia’s current top H100. This allows companies to develop smarter chatbots and convert simple text into creative graphical designs.