Nvidia stock closes at record, pushing sector cap past $5 trillion
Nvidia’s stock closed at its first record since October, as a rally in Intel pushed chipmakers higher.
Investors are piling into the chip trade ahead of earnings from the hyperscalers next week.
Nvidia shares closed at a record on Friday for the first time since October, pushing the company’s sector cap past $5 trillion, as investors piled into the AI chip trade ahead of earnings next week from tech’s hyperscalers.
The stock rose 4.3% to close at $208.27. Nvidia is up more than 14-fold since the end of 2022, driven by soaring demand for artificial intelligence services and models. Nvidia’s graphics processing units are relied on by Google, Microsoft,model developers OpenAI and Anthropic along with Meta and Amazon.
Friday’s rally was sparked by better-than-expected earnings late Thursday from chipmaker Intel, which has largely been left out of the AI economy until recently. Intel shares spiked 24%, their best performance since 1987.
Advanced Micro Devices, which competes with Nvidia and Intel, jumped 14%, while mobile device chipmaker Qualcomm climbed 11%.
Investors had been pulling back on large-cap innovation stocks as oil prices were skyrocketing due to the Iran war and supply chain disruptions that followed. But wide swaths of tech are back in favor of late, with demand for AI infrastructure showing no signs of slowing.
The Nasdaq is now up 15% in April, headed for its best month since April 2020.
Nvidia does face increasing competition in AI. Alphabet, a major Nvidia customer, proclaimed novel chips that will try to take on Nvidia’s offerings when they become available to cloud customers later this year.
WATCH: AMD likely to have same gains as Intel This also touches on aspects of portfolio.
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