NVIDIA Corporation (NASDAQ: NVDA) stock reached a new high Friday on news of plans for a specialized business unit focused on custom chips.
Reuters has revealed that NVIDIA (NVDA) is gearing up to launch a brand-new section of its business. The unit will be about creating custom chips, especially the ones that make artificial intelligence (AI) work. This move could help NVIDIA grab a slice of the rapidly growing custom chip market and solidify its spot as the world’s top chip company amid the AI frenzy.
NVIDIA set a new record high in its stock value shortly after hitting a previous high on Monday. The experts at Goldman Sachs raised their price target and gave NVIDIA a better rating, calling it a “buy.” They pointed to the company benefiting from the rising demand for AI.
According to projections by Factset, NVIDIA, along with other major companies like Amazon (AMZN), Meta (META), and Alphabet (GOOGL), is expected to lead the earnings growth for the S&P 500 in the first quarter of 2024.
NVIDIA will announce its fourth-quarter fiscal 2024 results after the market closes on Wednesday, February 21st.
NVIDIA (NASDAQ: NVDA) Stock Performance
NVDA stock rose 3.58% to close at $721.33 on Friday. The traders had exchanged hands with 43,360,948 (43.36 million) shares compared to the average daily trading volume of 43.59 million.