The stock rose 4.3% to close at $208.27, marking a strong return after a weak start to the year.According to Yahoo Finance, Nvidia added more than $200 billion in market cap in a single session, briefly reaching about $5.12 trillion.
The artificial intelligence boom is leading a huge march
Nvidia’s meteoric rise has been driven by growing demand for AI infrastructure, with its chip operating systems used by Google, Microsoft, Meta, and Amazon, as well as AI companies like OpenAI and Anthropic, CNBC reported.The stock is now up more than 14-fold since the end of 2022, highlighting how much investors trust in AI-driven growth.
Chip sector rally boosts momentum
The recent rally was driven by strong earnings from Intel, whose shares jumped 24% — their best performance since 1987 — indicating renewed momentum across the semiconductor space.Shares of other chipmakers also rose sharply. Advanced Micro Devices shares rose 14%, while Qualcomm shares rose 11%.The broader semiconductor index is on a historic winning streak, lifting valuations across the sector and supporting Nvidia’s recovery after earlier losses this year.
Technology stocks rebounded despite oil concerns
The rise comes after a brief decline in shares of large technology companies amid rising oil prices linked to the Iranian conflict and supply chain disruption. However, investors are turning back to the technology, betting that demand for AI will remain resilient.The Nasdaq Composite is now up 15% in April, on track for its best monthly performance since 2020.Despite its dominance, Nvidia faces increasing competition. Alphabet has announced plans to roll out its AI chips to cloud customers later this year, which could challenge Nvidia’s market share.However, with an earnings hike scheduled for next week and AI spending showing no signs of slowing, investors continue to support Nvidia as the central player in the global AI race.