Nvidia Stock Hits All-Time High Thanks to Meta’s Massive AI Chip Order

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Nvidia‘s share price is soaring thanks to booming demand for Nvidia chips to power artificial intelligence projects. The stock closed at $594.91 and hit an all-time high on Friday, Jan 19th, after Meta CEO Mark Zuckerberg revealed plans to build a massive AI infrastructure network packed with 350,000 Nvidia chips by the end of 2024.

Other tech giants and Fortune 500s are following suit, aggressively adopting AI to remain competitive. And Nvidia’s specialized hardware and Cuda software make its chips the go-to choice to fuel these AI ambitions.

Nvidia controls an estimated 70-90% of the global AI chip market. Rival AMD is also riding high on the AI wave, with its stock price nearly doubling over the past year. But AMD’s new MI300 chip isn’t yet stealing market share from Nvidia.

However, the AI chip demand isn’t infinite. Hyperscalers like Microsoft, Google, and Amazon have started developing custom ASIC chips tailored to their specific AI needs. Though more efficient, these specialized chips could decrease reliance on Nvidia’s general-purpose offerings.

Still, with AI in its infancy, Nvidia has room to grow despite threats to its dominance. The bigger risk is AI progress stalling or companies tightening budgets during a recession.

Will Nvidia Stock Continue To Grow At This Rate?

So is Nvidia destined to remain king of the AI chip market? It has confounded rivals before by continually innovating ahead of the competition. And AI will likely transform industries and daily life over the next decade in ways we can’t yet predict. For investors and innovators alike, the battle for AI chip supremacy will be fascinating to watch in the years ahead.

Whose stock do you think will come out on top in the intensifying AI chip wars: Nvidia, AMD, Intel, or Microsoft, Google, and Amazon? I’d love to hear your thoughts! Punch something into the comments.