Nvidia, a leading player in the semiconductor industry, witnessed another surge in its stock price on Monday amidst a broader rally in chip stocks worldwide. This rally gained further momentum with Taiwan Semiconductor Manufacturing (TSMC) achieving a record high in its stock value.
During early trading on Monday, Nvidia shares rose by 3.5% to reach $852.01. This followed a 4% increase in its stock price on Friday, closing at $822.79 and resulting in Nvidia being valued at an impressive $2.06 trillion.
TSMC, a critical supplier for Nvidia’s semiconductor needs, experienced a notable 5.2% rise in its stock price during trading in Taiwan on Monday, eventually closing at a historic high. This positive trend extended to other major Asian chip manufacturers, with Samsung Electronics registering a surge of over 2%, and SK Hynix jumping by a remarkable 6.6% in Korean trading. These gains in the Asian markets set a promising tone for U.S. chip makers as they commenced trading on Monday.
Among U.S. chip giants, Intel witnessed a modest increase of 0.5%, while Micron Technology saw a rise of 0.8%, and Qualcomm gained 1.8%. Advanced Micro Devices (AMD) also experienced a notable uptick, rising by 3.8% after recording a surge of more than 5% in its stock price on Friday.
The upward momentum in chip stocks towards the end of the previous week followed strong earnings reported by Dell Technologies. Dell’s earnings report highlighted robust demand for Nvidia’s chips, particularly in the segment of artificial-intelligence servers. These servers rely heavily on Nvidia and AMD chips, contributing to their increased demand. Notably, AMD’s stock outperformed Nvidia on Friday, witnessing a substantial 5.3% increase, while Dell’s stock soared by an impressive 32%.
Year-to-date, Nvidia’s shares have experienced a remarkable 66% surge as of the close of trading on Friday. This substantial increase significantly outpaces the 7.7% rise in the S&P 500 index and the 8.4% gain in the Nasdaq Composite over the same period, reflecting the robust performance and investor confidence in Nvidia’s prospects within the semiconductor industry.
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