NVIDIA Stock Soars to All-Time Highs Driven by AI Boom and Strong Q3 Earnings

NVIDIA‘s stock price has surged to all-time highs, driven by the persistent boom in artificial intelligence (AI) and the company’s exceptional Q3 2024 earnings results. As of October 29, 2024, NVIDIA’s stock is trading at $140.52, reflecting a significant increase over the past two years, with the stock up by 923% during this period.

The company reported a quarterly revenue of $30 billion, marking a 122% year-over-year increase, while earnings per share reached $0.68, surpassing analyst estimates of $0.64. This robust performance is largely attributed to strong demand for NVIDIA’s H100 data center GPUs and its networking division, which saw revenue jump by 114% year-over-year to $3.7 billion in Q2.

NVIDIA’s Compute & Networking segment has been the primary growth driver, generating $26.3 billion in revenue during Q2 fiscal 2025, representing a 16% sequential increase and a 154% year-over-year jump. The company’s Spectrum-X product line is projected to become a multibillion-dollar business within the next year.

Analysts are optimistic about NVIDIA’s future, with Bank of America analyst Vivek Arya projecting that the company could capture $272 billion in AI computing revenues by 2030. However, there are also concerns about NVIDIA’s customer concentration, as several major tech companies account for substantial portions of its revenue.

Despite emerging competition from AMD and Intel, NVIDIA maintains a competitive advantage through its CUDA software platform, which has become an industry standard. The stock currently trades at 36 times forward earnings, reflecting high growth expectations, though analysts warn of potential near-term challenges and the impact of a possible recession.