(Bloomberg) — Nvidia Corp. shares rose 2.1% on Tuesday to close at a record high and notch their 10th straight session of gains, matching the longest streak of advances on record.
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Updating its artificial intelligence processors helped lift shares of the Santa Clara, California-based company, which rose 22% during its recent rally, adding about $219 billion to its market value, according to data compiled by Bloomberg. This is as competitors scramble to come up with alternatives to challenge its dominance in artificial intelligence.
Read more: Nvidia upgrades processor as rivals challenge AI dominance
The stock of the world’s most valuable chipmaker has risen more than 240% this year, making it the best-performing component of both the Nasdaq 100 and S&P 500 as the artificial intelligence craze fuels the rallies. The latest rise comes as technology stocks rebound amid hopes that Federal Reserve interest rates have peaked.
Nvidia said its updated chip, called the H200, will gain the ability to use high-bandwidth memory, or HBM3e, allowing it to better handle the large data sets needed to develop and implement artificial intelligence.
“NVDA has not updated previous data center GPUs in the past,” Wolfe Research analyst Chris Caso wrote in a note. “So this represents further evidence of NVDA accelerating its product cadence in response to AI market growth and performance demands, further expanding its competitive moat.”
The current version of Nvidia’s processor, known as the AI accelerator, is already in high demand.
“The company’s accelerated pace of product launches with the H200 in mid-2024 will likely help defend its position,” said Kunjan Subhani, a Bloomberg Intelligence analyst. “The new AI processor comes with high-bandwidth memory and could be the best-performing GPU on the market, raising the bar on competition.”
Nvidia, which came under pressure last month as new US rules banned the sale of its advanced AI chips to China, is scheduled to report earnings on November 21.
(Chart updates and stock movements around when market closes)
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