Nvidia Corporation (NASDAQ:NVDA) stock hit another all-time high on Tuesday, in a sign that the bubble may not be over yet for the semiconductor megacap.
Shares reached $563.89 at NASDAQ’s closing bell, bringing Nvidia’s market capitalisation to an eye-watering $1.39 trillion.
Nvidia’s market valuation has tripled in the past 12 months thanks to an artificial intelligence (AI) premium.
The company’s top-spec microchips became synonymous with the AI revolution after OpenAI used thousands of Nvidia H100 units to train the landmark ChatGPT generative AI model.
Nvidia’s technology saw a massive surge in demand as a consequence, with large-scale data centres putting in substantial orders for the company’s graphics processing units (GPUs).
On top of that, Nvidia remains the leader in GPUs in the computer games industry, while adjacent software and networking products have reinforced group-wide revenues.
Last week, Nvidia impressed crowds at the Las Vegas Consumer Electronics Show with its new range hardware offerings, including three models of its GeForce RTX (NYSE:RTX) 40 Super Series desktop GPUs.
The top-of-the-line GeForce RTX (NYSE:RTX) 4080 Super is capable of generating AI images 1.7 times faster and video 1.5 times faster than the equivalent model from the previous generation of Nvidia technology.
The new chips are also optimised for a superior gaming experience, with the ability to power games with ray tracing at 4K resolution.
Though Nvidia shares are commanding a bumper premium of more than 74 times price to earnings, its revenues have soared accordingly.
Revenues of $18.12 billion in the last quarter represented a 206% year-on-year increase, while earnings per diluted share for the quarter came to $3.71, up more than 12 times from a year ago.
“NVIDIA GPUs, CPUs, networking, AI foundry services and NVIDIA AI Enterprise software are all growth engines in full throttle. The era of generative AI is taking off,” Nvidia CEO Jensen Huang told investors.
Nvidia shares are expected to open another 44 basis points higher when US markets open on Wednesday.