Nvidia’s ‘Insane’ AI Chip Demand Leads to Record Share Price

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Nvidia is the second most valuable company in the world, with a market cap of over $3 trillion. At market close on Monday, shares of the AI chipmaker hit an unprecedented high of $138.07 before falling to $131.32 at the time of writing.

Nvidia’s performance is tied to strong demand for its AI chips. Nvidia CEO Jensen Huang stated recently that demand for Nvidia’s Blackwell AI chip is “insane” and “everybody wants to have the most.” Nvidia expects to ship enough of the new chip to make several billion dollars.

Nvidia was briefly on the edge of unseating Apple as the most valuable company in the world on Monday. Last week, Nvidia shares grew by $400 billion in five days, more than the entire market cap of Costco.

Related: Employees Who Worked at This Company for the Past 5 Years Are Now Multi-Millionaires in ‘Semi-Retirement’

Huang also said last month that demand was his biggest worry, or what kept him up at night.

“We have a lot of people on our shoulders, and everybody is counting on us,” he said, adding that having access to Nvidia’s technology was a “really emotional” point for the company’s clients.

Nvidia counts the biggest tech players among its clients: Amazon, Meta, Microsoft, and Google contribute to more than 40% of its revenue. Nvidia’s earnings beat analyst expectations last quarter, with revenue growing 122% year-over-year, the fourth quarter in a row of growth over 100%.

Related: Nvidia’s Profits More Than Doubled, but Traders Are Still ‘Shrugging.’ Here’s Why According to a Market Expert.

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