Nvidia stock surges as CEO Huang talks up strong demand

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Nvidia stock surges as CEO Huang talks up strong demand
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Nvidia stock surges as CEO Huang talks up strong demand

Investing.com-- Shares of Nvidia rose sharply on Wednesday, underpinning a broader rally in technology stocks after Chief Executive Jensen Huang said the company was experiencing stellar demand for its artificial intelligence chips.

He said that the firm was experiencing strong demand for its newest generation of AI chips, called Blackwell, and said that companies would have no choice but to embrace"accelerated computing" to keep up with demand for AI.) surged 8.1% to $116.86 on Wednesday, its biggest one-day gain in six weeks. But the stock fell slightly in aftermarket trade.

His comments come after Nvidia was hit with a bruising sell-off last week, after the guidance provided with its July-quarter earnings failed to meet some elevated expectations. Still, the stock is trading up about 150% so far this year.Goldman Sachs reiterated its Conviction Buy rating on Nvidia along with a $135.0 price target in a recent note.

Nvidia makes the most advanced AI chips in the market, but counts on buying from a relatively small pool of technology giants for a bulk of its revenues.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events.

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