Nvidia Stock: AI Chip Demand Propels Value Near Apple's Peak

Nvidia's technological dominance continues to reshape the market landscape as the company inches closer to becoming the world's most valuable publicly traded enterprise. With a current market capitalization exceeding $3.5 trillion, the AI chip pioneer trails only slightly behind Apple's $3.7 trillion valuation. This remarkable trajectory is primarily driven by unprecedented demand for their latest Blackwell graphics processors, which offer up to four times faster AI training capabilities. These cutting-edge chips, commanding prices between $30,000 and $40,000 per unit, are already sold out twelve months in advance, with gross margins projected in the mid-70 percent range.

Microsoft's AI Investment Boosts Sector Confidence

The semiconductor sector received a significant boost from Microsoft's announcement of an $80 billion investment in AI data center expansion by the end of this fiscal year. This development, coupled with Foxconn Technology's record-breaking quarterly results driven by AI server component demand, further validates Nvidia's leading position in the expanding AI technology market. The company's stock has responded positively, climbing two percent in pre-market trading to reach $147, approaching its November record high of $153.