The remarkable stock surge that has elevated Nvidia Corp. to one of the world’s top three most valuable companies hinges on several key assumptions. One is that AI applications powered by Nvidia’s semiconductors will become integral to the modern economy. Another is that Nvidia and its network of subcontractors can seamlessly meet the surging demand for its technology.
While excitement around AI has fluctuated, Nvidia continues to be a leading supplier in the AI boom. The company’s revenue remains high, and the demand for its Hopper chip lineup and its successor, Blackwell, is robust.