Nvidia’s stock price briefly surpassed $144 on Friday, pushing its market value to $3.53 trillion, surpassing Apple’s $3.52 trillion, making it the world’s most valuable company. What factors are driving Nvidia’s soaring stock price?
(A summary of the previous situation: Nvidia’s market value exceeds 3.5 trillion magnesium, becoming the “second in history”! Bank of America raised the target price to $190, surpassing Apple?)
(Background supplement: Worldcoin collaborates with NVIDIA to launch the new generation Orb! After changing its name to World Network, it announces its landing in Taiwan.)
Table of Contents:
Nvidia’s market value reaches $3.53 trillion at one point
Tesla increases purchases of Nvidia chips
Experts optimistic about the continued rise of Nvidia stocks
After the electric vehicle manufacturing leader Tesla announced impressive third-quarter financial results, its stock price rose by 22% on Thursday and continued to rise by 3.36% on Friday, driving the overall increase of tech stocks and helping the Nasdaq index reach a new high.
Inspired by this, Nvidia, the supplier of chips for Tesla, also performed exceptionally well, with its market value surpassing Apple and becoming the world’s most valuable company.
According to Yahoo Finance data, Nvidia’s stock price reached a peak of over $144 during trading on the 25th, pushing its market value to $3.53 trillion, surpassing Apple’s $3.52 trillion. However, Nvidia’s stock price slightly fell to $141.54 at the close, reducing its market value to $3.47 trillion, while Apple slightly increased by 0.4%, stabilizing its market value at $3.52 trillion, reclaiming the top spot in market value.
In fact, Nvidia briefly became the world’s most valuable company in June of this year, but was quickly surpassed by Microsoft and Apple. The market value rankings of these tech giants have been constantly changing recently.
As for one of the reasons behind Nvidia’s strong stock price surge, it may be related to Tesla’s plans to significantly expand its AI capacity to support the training of its autonomous driving system. CEO Musk stated at the earnings conference that the Texas Gigafactory currently has 29,000 sets of Nvidia H100 AI servers installed and plans to add over 70% more by the end of October, bringing the total to 50,000 sets, which will be used to train Tesla’s Full Self-Driving (FSD) AI system.
Musk previously revealed that Tesla plans to invest $10 billion in AI-related capital expenditures this year, with half of the funds being used for internal development, focusing on self-designed AI inference computers, vehicle sensors, and the supercomputer “Dojo.” In order to fund these developments, about two-thirds of Tesla’s budget is spent on purchasing Nvidia chips.
In addition, memory manufacturer Western Digital’s latest quarterly earnings exceeded market expectations, boosting market optimism about data center demand and driving the strength of Nvidia and other semiconductor stocks. The Philadelphia Semiconductor Index rose 55.22 points or 1.07% on Friday, closing at 5,212.83 points.
With the continuous increase in demand for Nvidia AI chips from Tesla and global markets, Nvidia’s stock price has repeatedly reached new highs.
Russ Mould, Investment Director at stockbroking service company AJ Bell, holds an optimistic view on Nvidia’s future performance. He pointed out that the data from Tesla has reignited investors’ optimism, indicating that the rally of the tech giants may not be over yet.
Looking ahead to next week, the market will focus on a series of important events, especially the US October non-farm payroll data and the financial reports of the five major tech giants, including Alphabet, Amazon, Apple, Meta, and Microsoft. These pieces of information will reveal whether the US economy is facing a recession risk and may provide signals for the future policies of the Federal Reserve.
If the performance of tech stocks continues to be impressive, it may further boost Nvidia’s stock price.