Nvidia (NVDA) reached a record high on Monday, continuing its impressive rally as investor enthusiasm around artificial intelligence (AI) demand fuels a surge in AI hardware stocks. Nvidia’s shares have risen 8% over the past week, bringing the chipmaker closer to overtaking Apple (AAPL) as the most valuable company on Wall Street.
The stock’s momentum follows recent comments from Nvidia CEO Jensen Huang and partners, highlighting the increasing demand for the company’s AI chips. Other AI hardware companies like Arm (ARM), Qualcomm (QCOM), Broadcom (AVGO), Super Micro Computer (SMCI), and TSMC (TSM) also saw stock gains. TSMC shares closed at a record high on Monday.
The PHLX Semiconductor Index (^SOX) is up 4.5% over the past five days, outperforming the S&P 500’s (^GSPC) 2.9% gain during the same period. Analysts believe strong AI infrastructure spending will drive growth into 2024, with megacap tech companies such as Google (GOOG), Microsoft (MSFT), and Amazon (AMZN) expected to invest $215 billion in AI capital expenditures next year.
While AI hardware stocks remain bullish, analysts caution that the current boom could eventually slow as Big Tech’s AI infrastructure spending peaks, potentially as soon as next year.