Semiconductor giant Nvidia Corp.'s stock price set its longest consecutive rise in nearly seven years on Monday, hovering near historical highs. As of the close, Nvidia rose 0.59% to $486.20, and the stock has gained nearly 240% so far this year.
Earlier on Monday, the chip giant launched a new artificial intelligence (AI) chip, promising significant performance improvements compared to previous models. The company stated that the new generation AI chip H200 aims to train and deploy various artificial intelligence models.
It is reported that the new H200 chip is an upgraded product currently used to train the most advanced large language model H100 chip, integrating 141GB of memory and being better at "reasoning". When used for reasoning or generating question answers, the performance is improved by 60% to 90% compared to H100.
Aaron Rakers, an analyst at Wells Fargo, said that the H200 is NVIDIA's first chip to use HBM3e memory, giving it greater bandwidth and capacity, highlighting the importance of memory in the next generation of artificial intelligence workloads.
Nvidia stated, "With the help of HBM3e, Nvidia H200 provides 141GB of memory at a speed of 4.8TB per second, which is almost twice the capacity and 2.4 times the bandwidth compared to the A100
Chris Caso, an analyst at market research firm Wolfe Research, pointed out that Nvidia "has not updated its previous data center GPUs in the past, which further proves that Nvidia is accelerating its product pace to meet the growth and performance requirements of the artificial intelligence market, further expanding their competitive moat
NVIDIA's stock price rose nearly 0.6% on Monday, marking its ninth consecutive day of gains. According to Dow Jones market data, this is the longest consecutive increase in the stock since December 27, 2016, when the stock rose for 10 consecutive trading days. In the current nine trading days, the stock has risen by over 19%.
NVIDIA's stock price closed at $486.20 on Monday, 1.5% lower than the historical closing high of $493.55 set on August 31. The company will release its third quarter financial report after the close on November 21st.
On Monday, Michael Klein, an analyst at Mizuho Securities, evaluated Nvidia's rise over the past week. He wrote that the stock price increases of Nvidia, Broadcom, and TSMC seem to reflect the "true" attractiveness to investors and retail buyers, while the rise of AMD and chip equipment stocks seems more like a short squeeze.