(Bloomberg) — Nvidia Corp. experienced a 2.1% increase in shares on Tuesday, reaching a record high and achieving its 10th consecutive session of gains, which matches the company’s longest-ever streak of advances.
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An update to its artificial intelligence processors contributed to the rise in shares of the Santa Clara, California-based company. This update has resulted in a 22% climb during its latest rally, adding about $219 billion in market value. This growth comes at a time when rivals are striving to develop alternatives to challenge Nvidia’s AI dominance.
Read More: Nvidia Upgrades Processor as Rivals Challenge AI Dominance
The stock of the world’s most valuable chipmaker has surged by over 240% this year, making it the best performing component on both the Nasdaq 100 and S&P 500 indexes as the AI-driven frenzy fueled rallies. The latest surge comes as technology stocks rebound amid hopes that Federal Reserve interest rates have peaked.
Updated Chip
Nvidia has announced an updated chip, the H200, which will be capable of using high-bandwidth memory, or HBM3e. This enhancement will allow it to better cope with the large data sets needed for developing and implementing AI.
“NVDA has not refreshed prior datacenter GPUs in the past,” Wolfe Research analyst Chris Caso wrote in a note. “So this represents further evidence of NVDA accelerating their product cadence in response to AI market growth and performance requirements, which further expands their competitive moat.”
The current version of the Nvidia processor, known as an AI accelerator, is already in high demand.
“The company’s accelerated product-launch pace with H200 in mid-2024 is likely to help defend its turf,” Bloomberg Intelligence analyst Kunjan Sobhani said. “The new AI processor comes with high-bandwidth memory and could be the top-performing GPU on market, raising the bar for competition.”
Nvidia, which had been under pressure last month as new US rules banned the sale of its cutting-edge AI chips to China, is scheduled to report earnings on Nov. 21.
(Updates chart and stock moves throughout at market close)
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