Nvidia's stock price closed at a record high of 154.3 USD on 25/6, a 4.3% increase. This pushed the company's market capitalization to 3.77 trillion USD, reclaiming its position as the world's most valuable company from Microsoft.

Nvidia CEO Jensen Huang saw his wealth increase by 5.5 billion USD on 25/6, the largest single-day gain globally. His net worth has grown by over 20 billion USD since the beginning of the year, reaching 135 billion USD.

Analysts believe Nvidia will continue to be the biggest beneficiary of the global AI wave. In a note to clients this week, Ananda Baruah, an analyst at Loop Capital, wrote, "Our research indicates that we are entering the next 'Golden Wave' in the popularization of generative AI, and Nvidia is leading a new growth cycle with stronger-than-expected demand".

The Nvidia logo at Computex 2024 on 4/6 in Taiwan. Photo: Khuong Nha

Nvidia’s stock performance reflects Wall Street's renewed focus on AI investments. Chip stocks and AI-related technology companies have seen significant gains in recent years due to the sector's potential.

Nvidia currently leads in graphics processing units (GPUs), used in large language models and AI processing. However, the stock's strong performance this year is surprising, given the company's limited access to the world’s second-largest economy.

In April, Nvidia was effectively banned from selling its H20 chips in China, despite the product being developed to meet previous regulations. The Donald Trump administration also plans to eliminate an export licensing mechanism. Nvidia stated these policy changes would cost the company 8 billion USD in revenue and require writing off 4.5 billion USD in inventory.

Despite this, in its first-quarter financial report released last month, Nvidia reported a 69% year-over-year increase in revenue, primarily driven by a 73% increase in its data center segment. According to LSEG, analysts predict the company's full-year revenue will increase by 53% to nearly 200 billion USD. At the annual shareholders' meeting on 26/6, Huang stated that in addition to AI, robotics will also be a significant growth opportunity for the company.

Ha Thu (according to Reuters, CNBC)