NVIDIA's stock continued its ascent on Thursday, marking the seventh consecutive trading day of gains. Over this period, the stock has surged 20%, highlighting sustained investor enthusiasm for chipmakers poised to benefit from the massive capital expenditures in artificial intelligence.
On Thursday, NVIDIA's shares climbed as much as 4.7% to $236.47. This rally added over $900 billion to its market capitalization, bringing it closer to the $6 trillion threshold—a valuation milestone no company has ever reached.
This uptrend is the latest manifestation of investors concentrating their bets on perceived winners in the AI arena, with semiconductor firms at the epicenter of this movement. This week, NVIDIA's CEO Jensen Huang joined the U.S. presidential delegation to China in a last-minute addition.
The Philadelphia Semiconductor Index has soared nearly 70% since the end of March, with companies like Intel, Micron Technology, Advanced Micro Devices (AMD), and Broadcom also posting significant gains.
However, the scale of this advance has sparked concerns among some market participants who argue that U.S. equities are being propelled by an AI bubble that could burst. According to data compiled by Bloomberg, NVIDIA and Micron alone have contributed to more than 30% of the S&P 500's gains so far this year.
Thursday also witnessed the initial public offering of AI chipmaker Cerebras Systems, which stands as the largest IPO of the year. Demand was exceptionally robust, with the stock skyrocketing as much as 109% following its debut.
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