As the U.S. bull market advances into its third year, favorable economic indicators and robust corporate earnings have propelled stock markets to record levels. On October 15, 2024, NVIDIA's stock reached a new all-time high, with its market capitalization climbing to $3.39 trillion. This achievement solidifies NVIDIA's position as the second-largest publicly traded company in the United States, surpassed only by Apple, which boasts a market cap of $3.52 trillion.

On October 14, NVIDIA's shares closed at $138.07, reflecting a 2.43% increase from the previous trading session and surpassing its previous peak of $135.58, recorded on June 18. Since the beginning of 2024, NVIDIA's stock has surged nearly 180%, with total gains exceeding 900% since early 2023.

NVIDIA's extraordinary financial performance is evident in its recent quarterly earnings. Over the past five quarters, the company's revenue more than doubled each quarter, with growth exceeding 200% in three of those periods. According to projections from LSEG, growth is expected to decelerate slightly in the latter part of the year, with analysts forecasting an 82% increase in revenue for the fiscal quarter ending in October, bringing total revenue to $32.9 billion.

The dramatic surge in NVIDIA's stock price is closely tied to its leadership in the field of artificial intelligence (AI). As AI technologies continue to evolve rapidly, the demand for high-performance computing power has intensified. NVIDIA's GPUs are integral to the development and deployment of advanced AI models, including applications such as ChatGPT. Prominent technology companies, including Microsoft, Meta, Google, and Amazon, have made significant investments in NVIDIA's hardware, building extensive computational infrastructure to support their AI initiatives.

NVIDIA is widely regarded as a pivotal player in the AI sector, often characterized as providing the essential "picks and shovels" for the AI boom. The company dominates approximately 95% of the market for AI training and inference chips. Analysts from Mizuho highlight that NVIDIA benefits substantially from the billions of dollars invested annually by leading technology firms in AI infrastructure, underscoring the company's critical role in this burgeoning market.

In a recent statement, NVIDIA's CEO, Jensen Huang, announced that the company's new Blackwell chip has entered full-scale production, with demand described as "extremely robust." This product is expected to generate billions of dollars in revenue during the fourth quarter, further driving NVIDIA's stock price upward. A report from Morgan Stanley, following discussions with NVIDIA's management, indicated that orders for the Blackwell chip are already backlogged by approximately 12 months. The report concluded that "all indicators suggest sustained business strength, with a highly favorable outlook for the future."

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