NVIDIA Stock Reaches All-Time High

Investing.com — AI-darling NVIDIA's (NASDAQ:NVDA) stock closed at another new all-time high on Monday as it continued its meteoric rise. The stock closed up 4.14% to $143.71 and is now up 190.2% year-to-date.

Factors Driving Gains

Gains come after Taiwan Semiconductor Manufacturing (NYSE:TSM), which counts NVIDIA as one of its largest customers, said late last week that AI demand is "real" and "sustainable". TSMC reported that it expects revenue contributions from server AI processors to triple this year, accounting for mid-teens percentage of their total revenue in 2024.

Microsoft Orders Increase

In addition, large client Microsoft Corporation (NASDAQ:MSFT) is said to have increased its fourth-quarter NVIDIA GB200 orders by threefold, from 400 racks to 1,450 racks, according to analyst Ming-Chi Kuo.

“Blackwell chip production ramp-up begins in early 4Q24,” Kuo stated. “Considering yield rates and testing efficiency, estimated shipments are about 150,000-200,000 units in 4Q24, with significant growth projected at 200-250% QoQ to 500,000-550,000 units in Q1 2025.”

Dell's Blackwell Servers

Dell Technologies Inc (NYSE:DELL) is expected to begin shipping Blackwell servers as soon as November.

Future Growth Potential

Wedbush analyst Dan Ives believes that the overall AI infrastructure market opportunity could grow tenfold from today through 2027. They estimate that $1 trillion in AI capital expenditure spending is on the horizon over the next three years.