(News Bulletin 247) – The graphics processor manufacturer ended Monday’s session with a record closing price during Monday’s session, at $138.07. The company managed to reassure the market about the production issue for its next-generation Blackwell architecture.

Can Nvidia regain its crown as the world’s largest capitalization, which it only seized very briefly in June?

The graphics processor manufacturer has in any case moved back ahead of Microsoft and is now hot on the heels of Apple. With a market capitalization of $3.386 billion, it is only a stone’s throw from the Apple group ($3.516 billion).

On Monday, Nvidia increased by 2.43% and reached a record price at the close of Wall Street, at 138.07 dollars (its session record, of 140.76 dollars, was reached on June 20 during ‘a very volatile session).

The stock rallied 19.45% over one month, bringing Nvidia’s entire increase over the year to 178.8%.

After a slight downturn during the summer, Nvidia has resumed its inexorable stock market rise, after its CEO and founder, Jensen Huang, reassured the market on both production and demand for its new generation of graphics processors based on the Blackwell architecture.

In March, Nvidia unveiled these new graphics processors based on this architecture and whose characteristics are superior to its flagship product, the H100. But in August fears about the production and delivery schedule emerged, particularly following comments from financial director Colette Kress. The latter had mentioned, at the end of August, a modification in the stage of the chip manufacturing process.

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Renewed interest in AI

But in early October, Jensen Huang said Blackwell’s production was “in full production” and demand for this new generation of chips was “crazy.”

“The positive intervention by Jensen Huang, CEO of Nvidia, regarding the strong demand for Blackwell chips revives Nvidia’s share price,” writes Edmond de Rothschild AM.

Bloomberg also cites a management meeting with Morgan Stanley analysts. The latter wrote that Blackwell’s order book was “full over the next twelve months” and that “everything indicates that activity remains robust and that visibility (was) very high”.

These reassuring comments reinforced the market’s convictions in the demand boom that Nividia is experiencing.

“There were questions about the impact that production delays could have, so these announcements are reassuring,” Zehrid Osmani, portfolio manager at Martin Currie Investment Management, told Bloomberg.

Remember that Nvidia’s graphics processors are used by the company’s major customers to provide the computing power necessary for the development of large artificial intelligence (AI) models. However, according to Wedbush, investment spending related to AI will exceed $1 trillion over the next three years.

Several pieces of information have also created renewed market interest in the topic of AI. OpenAI, the company behind ChatGPT raised $6.6 billion last week, raising its theoretical valuation to $157 billion. Taiwanese founder TSMC delivered quarterly sales up 40%, indirectly signaling the strength of demand for AI.

These events “have reignited interest in the topic (of AI), and people are really excited about AI use cases,” said John Belton, portfolio manager at Gabelli Funds , also cited by Bloomberg.