Nvidia Stock Hits New Record High on Latest Signs of Chip Demand

Nvidia stock was gaining early on Wednesday as it continues to benefit from expectations for its next generation of artificial-itelligence chips. Both Tesla and Hewlett Packard Enterprise executives called out the chip maker as the dominant supplier in the AI boom.

Nvidia shares were up 2.6%, at $ 1,194.27, in early trading, setting a new intraday high. The stock closed up 1.3% on Tuesday. The company will complete its planned 10-for-1 stock split this Friday.

Nvidia stock has set record closing highs in recent days after CEO Jensen Huang announced plans for the Blackwell Ultra chip in 2025 and a next-generation Rubin platform for 2026 over the weekend.

There are further signs of strong demand for Nvidia’s chips. Tesla CEO Elon Musk gave more details on planned purchases of Nvidia processors for the electric-vehicle maker. He is reported to have prioritized supplying his social-media company X and AI start-up xAI, according to CNBC.
In a post on X, Musk said Tesla didn’t have any site that could use the chips at the time of the shipments. He said he expects Tesla will buy $3 billion to $4 billion in Nvidia chips this year, and that the hardware represents about two-thirds of the cost of building AI training infrastructure for the EV company.

Further good news for the AI space in general and Nvidia in particular came from HP Enterprise, which talked up strong demand for AI servers powered by Nvidia’s current-generation H100 chips in its own earnings report on Tuesday.

Asked by analysts about whether he expected Nvidia’s competitors to take a greater share of the market in future, HP Enterprise CEO Antonio Neri sounded skeptical.

“Today, in generative AI, the market leader is Nvidia. And that’s where we have aligned our strategy, that’s where we have aligned our offerings,” Neri said on a call with analysts. “There are also systems that will come in 2025 that may have different type of accelerators…but right now, we are aligned to Nvidia.”

Still, there are plenty of would-be competitors looking to take a slice of Nvidia’s pie. The latest is Taiwanese company Kneron, an AI chip start-up backed by Qualcomm. The company on Wednesday launched its KNEO 330 product. This works differently than cloud-based AI models, which are often powered by energy-intensive Nvidia chips.

The KNEO 330 server product is physically based at the premises of customers and designed to enable low-power use of AI models.

Among other chip makers, Advanced Micro Devices was up 3.5% in morning trading and Intel was rising 1.2%.

Nvidia shares have risen 135% this year to date through Tuesday’s close. That compares with a 11% rise in the S&P 500 index and a 12% rise in the Nasdaq Composite Index over the same period.