Nvidia (NVDA) stock has surged 2% on Monday, inching closer to its all-time high after a remarkable turnaround in the past couple of months. The company’s success can be attributed to the strong demand for its powerful AI chips from both hyperscalers and foreign nations looking to enhance their AI capabilities.
Closing at $144.69 per share, Nvidia is just 3% away from its record high. The recent spike in stock price follows Nvidia’s participation in the GTC Paris event and CEO Jensen Huang’s presence at the Viva Technology conference in France.
With a solid first quarter earnings report in May, Nvidia has been making significant strides in various sectors, including sovereign AI. This concept involves countries establishing data centers to bolster their AI infrastructure. Notably, Nvidia played a key role in President Trump’s deals with Saudi Arabia and the United Arab Emirates, where thousands of Nvidia AI chips were procured.
However, Nvidia is facing challenges due to the Trump administration’s ban on chip sales to China. The company reported a $4.5 billion loss in its recent earnings due to the ban and anticipates an additional $8 billion write-down in the current quarter. Despite this setback, Nvidia exceeded revenue expectations with the successful sale of its latest Blackwell chips and server equipment.
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