Nvidia, Partner Stocks Climb on New AI Platform
Nvidia and its partner stocks saw a significant increase after the chipmaker announced its next-generation artificial intelligence (AI) chip and revealed plans to unveil new semiconductors annually. This move led Bank of America to raise its price target for Nvidia.
Nvidia’s shares surged over 3% in intraday trading on Monday, reaching $1,131.70 by midday. The company’s partners, including Micron Technology, TSMC, and Arm, also experienced stock gains following the announcement.
CEO Jensen Huang shared that Nvidia will introduce the Rubin platform in 2026, the successor to the Blackwell platform unveiled earlier this year. The new platform will feature GPUs, Arm-based CPUs, and networking chips, aiming to keep pace with the rapid advancements in AI technology.
Analyzing the situation, Bank of America analysts increased Nvidia’s target stock price to $1,500, citing robust growth opportunities as gaming cycles reach a trough and data center demand continues to rise. They emphasized the ongoing potential for AI development, suggesting that the industry’s peak is yet to come.
Additionally, Advanced Micro Devices (AMD) shared details about its next-generation AI chips, including the MI350 family expected to launch in 2025. Similar to Nvidia, AMD is striving for an annual product release cycle to stay competitive in the market.
While Nvidia’s stock soared, AMD experienced initial gains before dipping later in the session. Both companies remain optimistic about the future of AI technology and the opportunities it presents for accelerated computing and processor innovation in consumer devices.
Overall, the advancements in AI technology by Nvidia and AMD are seen as positive developments that could fuel further growth in the semiconductor industry. As these companies continue to push the boundaries of innovation, investors and analysts are closely watching for new opportunities in the ever-evolving tech landscape.
