Nvidia tops $750 and targets $800 per share

• Nvidia shares have risen dramatically, surging 243% last year and 60% so far this year.
• The company is now flirting with $800 per share, beating analysts’ predictions with strong earnings reports.
• AMD emerges as a formidable competitor with its new AI GPU, the MI300X, challenging Nvidia’s market dominance.

Nvidia’s rise in the stock market has been nothing short of remarkable, up 243% over the past year and up 60% year-to-date. This momentum is largely attributed to the company’s strategic positioning as a leading supplier of semiconductor chips designed for AI applications. This specialisation has propelled Nvidia to achieve significant growth in sales and profits, captivating the interest of investors around the world. The surge came as no surprise to some, such as Real Money Pro’s Bruce Kamich, who had predicted the stock’s potential to surpass $750, a milestone Nvidia comfortably surpassed after a 16% jump on February 22, driven by a blockbuster earnings report.

AMD’s MI300X drives $3.5 billion sales projection

As Nvidia continues its upward trajectory, it faces a new challenge from Advanced Micro Devices (AMD). Under the leadership of its CEO, AMD entered the AI GPU market. It introduced its MI300X, which received an “overwhelmingly positive” response from customers. This response has led to an aggressive production ramp-up. The ramp-up is aimed at meeting robust demand. As a result, sales projections have soared from $2 billion to more than $3.5 billion this year. This competition highlights the dynamic and rapidly evolving nature of the semiconductor industry. In this industry, innovation and market responsiveness are key to maintaining leadership.

Nvidia’s H200 Doubles Performance

In response to AMD’s competitive drive, Nvidia is not standing still. Instead, the company is actively developing new AI chips. One such chip is the H200, which has already started shipping. Surprisingly, the H200 boasts twice the performance of its predecessor, the H100. In addition, Nvidia is focusing on the Blackwell GPU architecture. This architecture will feature the B100 chip, which is expected to be launched later this year.

Despite the intensified competition, there is a positive side. The huge potential of the market is enormous, with growth predicted to average 73% per annum. By 2027, it is expected to reach $400 billion. It therefore suggests that both Nvidia and AMD can have significant success.

Meanwhile, as financial markets react to these technological developments, volatility is notable. The FTSE 100 and US stock indices, for example, have experienced fluctuations. In particular, broad market index futures fell slightly by 0.04%. Similarly, Dow Jones Industrial Average futures declined by 15 points, marking a 0.04% drop. In addition, Nasdaq 100 futures fell by 0.12%.

The downward trend continues, with the Dow Jones and the S&P 500 experiencing declines of 0.16% and 0.38%, respectively. Finally, the Nasdaq Composite, known for its composition of high-tech stocks, declined by 0.13%. This movement underscores the sensitivity of financial markets to developments within technology companies such as Nvidia and AMD.

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