Image courtesy of
Nvidia’s (Nasdaq: ) stock surged on Thursday following CEO Jensen Huang’s about the company’s , Blackwell, and its participation in . The tech giant’s shares have seen a meteoric rise of 149% year-to-date, reflecting strong investor confidence in its AI-driven growth strategy.
Demand for Nvidia’s Next-Gen GPU Chip is “Insane”, CEO Says
Nvidia’s CEO Jensen Huang declared that “demand for Blackwell is insane” during a recent interview, sparking a 5% jump in the company’s stock price. Blackwell, Nvidia’s next-generation GPU chip, is now in full production despite earlier reports of slight delays due to small redesigns.
Huang emphasized Nvidia’s commitment to increasing GPU performance by two to three times each year, positioning the company to deliver faster and more efficient chips to customers annually.The intense demand for Nvidia’s chips was further highlighted by Oracle cofounder Larry Ellison, who revealed that he and Elon Musk “” Huang for more GPU chips during a dinner meeting. Ellison recounted telling Huang, “Please take our money. We need you to take more of our money.”
Nvidia Participated in OpenAI’s Latest Funding Round
In a significant move, Nvidia has participated in OpenAI’s latest funding round, which closed at a post-money valuation of $157 billion. The round, led by Thrive Capital, raised $6.6 billion and included other major investors such as Microsoft (Nasdaq: ) and SoftBank. While the specific amount invested by Nvidia was not disclosed, this participation signals the company’s strategic interest in the rapidly evolving AI landscape.OpenAI’s remarkable growth is evident in its financials, with the company generating $300 million in revenue last month, a staggering 1,700% increase since early last year. The AI firm projects sales of $11.6 billion next year, up from $3.7 billion in 2024. With 250 million weekly active users on ChatGPT, including 11 million ChatGPT Plus subscribers and 1 million paying business users, OpenAI’s explosive growth aligns perfectly with Nvidia’s vision for AI-driven computing.As of 11:53 AM EDT on Thursday, Nvidia’s stock was trading at $123.24, up 3.69% for the day. The company’s market capitalization stood at an impressive $3.023 trillion, with a trailing of 55.72 and earnings per share of $2.13.
Nvidia’s year-to-date return of 148.91% significantly outpaces the S&P 500’s 19.70% gain, reflecting the market’s enthusiasm for AI-related stocks. With a profit margin of 55.04% and a return on equity of 123.77%, Nvidia continues to demonstrate strong financial performance, solidifying its position as a leader in the AI revolution.More By This Author:Crude Oil Price Jumps Over 4% As Israel-Iran Tensions EscalateIs this Startup IPO An Opportunity To Own The Next Big AI Stock?Tech Giant Samsung Cuts Jobs As Stock Plummets 20% In 2024
