Will Nvidia’s share price continue to rise?
The share price of Nvidia, a leading maker of AI chips, is rebounding after reporting first-quarter revenue of $26 billion and is above $1,000 per share.
Shares of California-headquartered chipmaker Nvidia fell after investors worried about signs of slowing growth, even as the artificial intelligence chip maker reported a 122% year-on-year increase in second-quarter revenue.
Nvidia has become one of the most valuable companies in the world and investors expect artificial intelligence to become an engine of the economy in the coming years.
The stock fell as much as 7% in premarket trading before paring losses to 2% in early trading on New York’s Nasdaq, according to USA TODAY. The chipmaker is the world’s third most valuable company with a market value of $3.1 trillion.
Simon French, chief economist and head of research at investment bank Panmure Liberum, told the BBC that there were several reasons for the decline in Nvidia shares.
“There were just some signs in the numbers that that pace of growth was trying to slow down,” French said. “Their current AI chip ‘hopper’ is selling well, but the next one, the next generation from Blackwell, has had some production delays, and that may be one of the reasons Wall Street sold off the stock after the market closed.”
How much has Nvidia stock risen recently?
Nvidia stock has risen 765% since early 2023, when the AI boom really took off. The company is now worth $3.1 trillion, so even a small move in its stock can add billions of dollars to its valuation.
What is Nvidia doing?
Nvidia is a chipmaker founded in Santa Clara in 1993. Its artificial intelligence customers include ChatGPT, Amazon, Snap and Google, according to a company statement. The company also makes graphics cards that are critical to modern gaming.
The company currently employs around 30,000 people.
USA TODAY contributed to this report.
