Nvidia became the third most valuable company on Wall Street this week, putting it just behind tech behemoths Microsoft and Apple.
The US chip maker saw its value more than treble in 2023 as it cashed in on the ongoing demand for Artificial Intelligence.
Shares have continued to rise this year and investors will be hoping for more when Nvidia reports its fourth-quarter earnings on Wednesday.
The bar has been set high after chief executive Jensen Huang said the group expects to post sales of £16billion for the final three months of 2023.
This is around £11billion more than the group made in the final three months of 2022.
And there is also mounting pressure after the company smashed analysts’ forecasts for sales and profits in the first nine months of the year.
Some analysts have said this could be to its detriment, with expectations too high.
‘The AI hype-train is not only rolling but delivering, as far as Nvidia is concerned,’ said Danni Hewson, head of financial analysis at AJ Bell. ‘Momentum investors seem happy to pile in, although value seekers are likely to be more reticent, given the lofty valuation which leaves little room for error.’
For much of the past 30 years, Nvidia’s success has come from computer games, with its chips featuring in the likes of Call of Duty and Counter-Strike.
But its chips are a favourite for AI, which has become the focal point for the biggest players in Silicon Valley. Nvidia has a market cap of £1.4 trillion.
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