Nvidia Corp is leading the charge in the AI revolution, with its stock soaring 25% after a stellar forecast. The chip designer’s shares extended their rally this year, hitting an all-time high in premarket trading and swelling its market valuation by about $189 billion to $945 billion. Analysts rushed to raise their price targets on Nvidia stock, with 21 lifting their view on the idea that all roads in AI lead to the company.
CEO Jensen Huang said a $1 trillion worth of current equipment in data centers would have to be replaced with AI chips, as generative AI is applied into every product and service. The results bode well for Big Tech companies, which have shifted focus to AI in hopes the technology would help attract demand at a time their profit engines of digital advertising and cloud computing are under pressure from a weak economy. Nvidia is leading the way in the AI revolution, and its success is a sign of what is to come.