NASDAQ: NVDA
Key Data Points
Nvidia (NVDA 1.28%), the leading developer of GPUs and AI solutions for data centers, closed Thursday at $187.05, up 2.13%. Shares moved higher as investors responded to renewed evidence of robust AI demand and upbeat commentary on Nvidia's data center growth prospects, with attention focused on ongoing AI processor momentum.
Trading volume reached 202.4 million shares, coming in nearly 1% above compared with its three-month average of 183.7 million shares. Nvidia IPO'd in 1999 and has grown 455,785% since going public.
How the markets moved today
The S&P 500 (^GSPC 1.10%) added 0.27% to finish Thursday at 6,945, while the Nasdaq Composite (^IXIC 1.37%) rose 0.25% to close at 23,530. Among leading semiconductors, Advanced Micro Devices (AMD 3.10%) closed at $227.92 (+1.93%), and Intel (INTC 5.02%) finished at $48.3 (-0.85%), underscoring stock-specific reactions within the semiconductors group.
What this means for investors
Investors have recently been hesitant with AI-dependent companies, fearing that spending has peaked, and there might be a pullback. Those concerns have held Nvidia shares steady for several months. The stock has risen less than 4% over the past three months.
News from Taiwan Semiconductor Manufacturing (TSM 4.25%) helped calm those fears today, however. TSMC, a major supplier to Nvidia, reported net profit surged 35% in Q4. Maybe more importantly, it said it will increase capital expenditures by more than 30% this year to about $56 billion.
That tells investors that AI chip demand has a long runway. The company wouldn't commit that kind of investment growth if that weren't the case.
