Nvidia Corp. marks its longest run of advances since the record-setting performance in December 2016

Nvidia Corp., the leading chipmaker globally, is nearing the end of an impressive 10-day winning streak, marking its longest run of consecutive gains since the record-setting performance in December 2016. The company, headquartered in Santa Clara, has witnessed a notable climb of around 20%, equating to a remarkable addition of approximately $200 billion in market value, according to Bloomberg’s compiled data.

This surge in Nvidia’s stock value is occurring amidst heightened competition, with rivals striving to develop alternatives challenging Nvidia’s dominant position in the field of artificial intelligence (AI).

Nvidia’s shares have undergone an exceptional rally, surging over 230% this year, solidifying its status as the best-performing component on both the Nasdaq 100 and S&P 500 indexes. The fervor surrounding AI has significantly contributed to this stellar performance, and the recent surge aligns with a broader rebound in technology stocks, driven by optimistic sentiments regarding the Federal Reserve’s indications that interest rates may have reached their peak.

Underlining Nvidia’s commitment to innovation, the company has announced the release of its updated chip, the H200, incorporating high-bandwidth memory known as HBM3e. This enhancement is designed to boost the chip’s capacity to handle substantial datasets crucial for AI development and implementation. Analyst Chris Caso from Wolfe Research highlighted that Nvidia’s decision to refresh its datacentre GPUs signifies a proactive response to the growth and performance demands of the AI market.

Bloomberg Intelligence analyst Kunjan Sobhani emphasized the significance of Nvidia’s swift product launch pace with the H200 in mid-2024, positioning the new AI processor with high-bandwidth memory as a potential market leader and a move to “help defend its turf.”

Despite encountering challenges last month due to new US rules restricting the sale of cutting-edge chips to China, Nvidia has exhibited resilience and is scheduled to report earnings on November 21.