Exclusive: This analyst says Nvidia's stock 'appears vulnerable to a correction'
Investing.com — Nvidia's (NASDAQ:NVDA) stock price edged higher in early U.S. trading on Monday after the poster child for a surge in demand for artificial intelligence briefly touched a market capitalization of $2 trillion in the prior session.
NVDA stock price and market cap
The California-based group's stock price has risen sharply over the past week — and, indeed, for much of the last twelve months.
Bumper quarterly earnings sent shares in Nvidia soaring in value by $277 billion on Thursday, marking the largest one-day gain in Wall Street history. After the end of trading in New York on Friday, Nvidia had a market value of $1.97 trillion.
Once known as a provider of graphics processors for computer games, Nvidia has assumed a central role in a wave of euphoria for AI that has led a wide range of businesses to invest heavily in developing their usage of the nascent technology.
Nvidia's best-selling chips, which can help developers assess and analyze data for large language models, have turned into standards for the wider tech industry. They have subsequently powered the proliferation of so-called generative AI systems that can turn prompts into complex text, videos and images.
One of these chips, the H100, initially gained notoriety as the workhorse for OpenAI's megapopular chatbot ChatGPT. It has since become the must-have item in a rapidly accelerating AI arms race, particularly as companies face increasing pressure to show progress in their AI offerings.
Instagram-owner Meta Platforms (NASDAQ:META) has said it is seeking to secure 350,000 of the processors this year alone. Elsewhere, Nvidia has said it has seeing spending on AI rise in industries like automotive manufacturing, financial services and healthcare.
Read more on investing.com
