Semiconductor maker Nvidia jumped by 2.43% on Monday to close at a record high amid projected increasing demand for artificial intelligence (AI) chips. Other chip stocks, including Qualcomm and Arm, surged as well.
Investors are optimistic about Nvidia’s ability to keep its dominant position in the AI chip and software sector. Big tech companies like Microsoft and Google continue to ramp up their spending on expanding their AI capabilities, and Nvidia continues to be their main source of AI hardware.
Additionally, Nvidia is expected to benefit from the recent $6.6 billion investing round by ChatGPT maker OpenAI. Nvidia not only made an investment in OpenAI but is also expected to directly benefit from the startup’s increased demands for AI chips, which are required to power its growth.
After a 2.43% jump, Nvidia’s stock closed at an all-time high of $138.07 per share and is currently 186.63% up year to date. The previous record for the chipmaker was $135.58 per share, achieved in June.
Qualcomm, which dominates the smartphone chips sector, saw its stock jump by 4.74% and close at $178.04 per share. The shares of British semiconductor giant Arm, which is planning to launch an AI chip in 2025, jumped by 6.84% to close at $161.82 per share.