NVIDIA's stock price hits a new high: Dual drivers of surging demand for AI chips and stable supply
Why did NVIDIA's stock price hit a new high?
On October 21, 2024, NVIDIA's stock price hit a historic high, closing up 4.14%, with the company's market value surpassing $3.5 trillion for the first time. Behind this achievement is the surge in demand for AI chips and stable upstream supply.
NVIDIA CEO Jensen Huang recently stated that the new generation AI chip Blackwell unveiled at this year's GTC conference has been fully booked, with a potential shortage in the next 12 months. Dell's Infrastructure President Arthur Lewis also mentioned that servers equipped with Blackwell chips will be shipped to specific customers in November and will be fully launched in early 2025, demonstrating the actual demand for NVIDIA chips.
In addition to Blackwell, NVIDIA's GB200 chip is also worth noting. Microsoft, as one of NVIDIA's major customers, has made large-scale purchases of GB200, indicating strong market demand. Vertiv, a representative component supplier of GB200 in the US stock market, recently hit a historic high in its stock price, confirming market expectations of high demand for GB200.
TSMC, as a stable supplier of advanced chip materials, is another factor driving NVIDIA's stock price to new highs. TSMC's recent financial report data shows that its net profit in the third quarter exceeded the expected $10 billion, and it is expected to achieve another record high revenue in the fourth quarter. NVIDIA's high-performance GPUs and AI chips rely on TSMC's advanced process technology, and TSMC's better-than-expected performance indicates strong demand for NVIDIA with no supply chain disruptions