The stock surged in pre-market trading, pushing it past the barrier before dipping back slightly below that level at the close of regular trading.
“The surge is indicative of the growing demand for its products, particularly those related to artificial intelligence (AI),” said StockApps’ financial analyst Edith Reads.
“The company has been a leading player in developing AI application technologies, such as self-driving cars and facial recognition systems. This has made Nvidia’s GPUs a crucial component in many data centres around the world,” she said.
Used by tech giants
Nvidia’s GPUs have been widely adopted by tech giants such as Google and Amazon for their AI applications. Nvidia has also seen a surge in demand from the gaming industry, as its chips are used for enhanced virtual reality (VR) and augmented reality (AR) experiences.
The company’s success has been attributed to CEO Jensen Huang’s strategy of making AI applications a central focus for the company.
In an interview last month, Huang said, “we had the good wisdom to go put the whole company behind it. We saw early on, about a decade or so ago, that this way of doing software could change everything.
“And we changed the company from the bottom all the way to the top and sideways. Every chip that we made was focused on artificial intelligence.”