Shares in the US chip manufacturer Nvidia reacted to the quarterly figures and the chip processor manufacturer’s optimistic outlook with a high price gain on Thursday. At times, shares jumped to their highest level since April 2022 and were most recently up 15 percent to $238.
With an increase of 62 percent since the beginning of the year, Nvidia shares lead the list of winners in the Nasdaq 100 together with the papers of the electric car manufacturer Tesla (plus 65 percent). Since the interim low last October, shares in the US investor’s favorite have more than doubled. Despite the recovery in recent months, the paper would have to increase by around 40 percent again to climb back to the record level of autumn 2021.
Bet on artificial intelligence
Nvidia’s still relatively small car division is gaining considerable momentum, wrote analyst Ingo Wermann from DZ Bank. Numerous partnerships with well-known car manufacturers in the development of digital cockpits and in the field of autonomous driving should ensure that the positive development continues. Wermann also sees the data center division as one of the main beneficiaries of the increasing use of “artificial intelligence” (AI) in many areas of life. Although Nvidia’s foray into AI is still modest, it is already having an impact on investors.
According to Bernstein analyst Stacy Rasgon, investors could tactically rely on the chip manufacturer, which is now one of the world’s most valuable companies with a market value of 580 billion dollars again, on an increasing data center business and the strong gaming business. In addition, there is imagination for the areas of AI and cloud.
Nvidia’s data center business cushioned the losses in graphics cards. The group’s technologies are well suited for AI-based applications, which are currently in high demand. So have announcements from tech companies like Microsoft, Google and Baidu to invest more in AI-supported chatbots such as ChatGPT in the future, have recently regularly caused price increases.
Nvidia wants to make its resources more widely available through partnerships with major cloud service providers, Nvidia CEO Jensen Huang said.