The Nvidia train is back in motion, with shares on track to log their best four-session stretch of the year.
Nvidia has added $591 billion in market capitalization over the four-day run that has lifted its stock by 14%, according to Dow Jones Market Data. For context, that’s more than the total market cap of Oracle, which stood at $557 billion on an intraday basis Monday. Only 17 companies besides Nvidia have market values north of $550 billion.
Investors may be showing appreciation for the strong capital-expenditure commitments from the hyperscalers in recent weeks, according to Bernstein analyst Stacy Rasgon. That signals the demand for Nvidia chips isn’t showing any signs of slowing, he told MarketWatch.
He said there had been a “divergence” up until recently between shares of Nvidia and other players in the AI supply chain, like Intel, Advanced Micro Devices and Qualcomm. That gap had been getting “increasingly wide,” he said.
Shares of Nvidia are up 18% so far this year, far behind the PHLX Semiconductor Index, which has seen a 68% gain in that period. Nvidia’s stock rose about 2% in Monday’s session, about even with the chip index’s performance.
Rasgon noted that investors are diversifying their bets across various hot areas seen as AI beneficiaries.
“People were playing memory, and then all of a sudden they were playing semicap, and then they were playing optical, and then power settings, and then CPUs,” he said. “One at a time, these are parts of the industry that people didn’t realize were going to be affected by AI.”
Elazar Advisors analyst Chaim Siegel recently told MarketWatch that Nvidia has had some “slowdown risk” this year, which he believes could carry into next year.
“Even though there’s more capex coming, there’s a memory bottleneck along with a data-center buildout bottleneck,” he said. “There’s lots of demand, but because supply is tight, growth can still slow.”
Investors are also gearing up for Nvidia’s earnings results next Wednesday, Rasgon noted.
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