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Exciting news in the world of finance as shares of Nvidia (NASDAQ: NVDA) surged higher on Wednesday, jumping as much as 5.2% and ending the day with the stock up 5.2%. This spike pushed Nvidia’s market cap above $3 trillion for the first time, marking a significant milestone for the company.
Leading in Artificial Intelligence
Nvidia has become known as the poster child for artificial intelligence (AI) due to its leading position as a provider of graphics processing units (GPUs) used in AI applications. Any positive news in the AI space tends to have a positive impact on Nvidia’s stock, and recent developments have only fueled its rise further.
One major development was the news that Taiwan Semiconductor Manufacturing (TSMC) is acquiring a high-NA extreme ultraviolet machine from ASML. This technology represents the latest in AI chipmaking, and as TSMC’s second-largest customer, Nvidia will have full access to this cutting-edge tech.
Another contributing factor to Nvidia’s rise was the exceptional results reported by Hewlett Packard Enterprise for its fiscal second quarter. The company exceeded expectations, citing growing demand for AI as a key driver of its success.
Room for Growth in AI
While these recent developments may not be directly tied to Nvidia, they reinforce the idea that the demand for AI is rapidly increasing. Nvidia has been a major beneficiary of AI adoption, with approximately 90% market share in the AI chip market. The upcoming 10-for-1 stock split has also added to the excitement surrounding Nvidia’s future.
According to McKinsey & Company, the market for generative AI is expected to reach between $2.6 trillion and $4.4 trillion in the coming years, indicating significant growth potential for Nvidia.
Investing in Nvidia
For investors considering Nvidia, it’s important to note that the Motley Fool Stock Advisor team recently identified the 10 best stocks for investors to buy now, and Nvidia did not make the list. These selected stocks have the potential to deliver significant returns in the coming years.
However, looking back at Nvidia’s track record since 2005, an investment of $1,000 in the company at that time would have grown to an impressive $713,416.* Stock Advisor has a proven track record of outperforming the S&P 500 since 2002, providing investors with valuable insights and recommendations.
As Nvidia continues to lead in the AI space and with significant growth opportunities ahead, it’s worth considering the potential benefits of investing in this innovative company.
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*Stock Advisor returns as of [Current Date]