Nvidia Corporation has Experienced a noticeable Surge in its Stock Price, with Shares Rising by 25 per cent over the Past Month

Nvidia Corporation has experienced a noticeable surge in its stock price, with shares rising by 25 per cent over the past month.

As the technology earnings season approaches, Nvidia is nearing an all-time high, reflecting strong investor confidence driven by its pivotal role in the artificial intelligence (AI) sector.

This surge follows a year that has seen Nvidia's stock more than double, with an increase of over 165 per cent since January as detailed in a report by CNBC.

The US tech industry is buzzing with anticipation as major firms such as Meta, Alphabet, Microsoft, Oracle, and OpenAI continue to roll out innovative AI technologies.

These advancements require significant investments in Nvidia's graphics processing units (GPUs), which are essential for powering AI applications.

As a result, Nvidia has positioned itself as a key player in this rapidly expanding market.

In recent trading sessions, Nvidia's stock saw a slight dip to approximately $132 per share, just below its July peak of $135.58.

The stocks all time high was $140.76, however, the recent minor setback has not dampened overall enthusiasm for the company.

Further, following a brief decline in late August and early September, Nvidia's stock has rebounded strongly, overtaking Microsoft to become the second-most valuable company in the world, trailing only Apple.

Currently Nvidia has a market capitalization of $3.253 trillion.

Nvidia's impressive performance can be attributed to its status as the primary beneficiary of the AI boom.

The company reported staggering second-quarter results earlier this year, showcasing a year-over-year revenue increase of 122 per cent and net income more than doubling to $166 billion.

Furthermore, Nvidia provided optimistic guidance for the upcoming quarter and announced plans to ship several billion dollars' worth of its new Blackwell artificial intelligence (AI) chip.

This chip is expected to retail between $30,000 and $40,000 per unit and will see production ramping up significantly in the fourth quarter and continuing through fiscal 2026.

Future prospects and market share of Nvidia

Market analysts are also optimistic about Nvidia's future prospects. In a recent note from Mizuho analysts, it was estimated that Nvidia holds approximately 95 per cent of the market share in AI training and inference chips for data centre applications.

They set a price target of $140 for Nvidia's stock but also cautioned investors about potential risks associated with increasing export restrictions to China and geopolitical tensions related to Taiwan.

“Everyone desires to be the first and to possess the most,” said CEO Jensen Huang during an interview on CNBC’s 'Closing Overtime,' highlighting the "insane" demand for the Blackwell chip. This sentiment reflects the competitive landscape among tech giants vying for dominance in AI technology.

The recent uptick in Nvidia’s stock can also be attributed to various factors over the past month.

Notably, on September 23, shares rose by 4 per cent following a filing indicating that Jensen Huang, Chief Executive Officer (CEO) of Nvidia had completed selling a portion of his stock holdings.

Therefore, as investors eagerly await updates from major clients like Meta and Microsoft regarding their anticipated investments in AI technology, all eyes will remain on Nvidia as it continues to lead the charge in this transformative sector.