:max_bytes(150000):strip_icc()/GettyImages-1988609582-fce7de6b33954e87aa4d7409c66a0c02.jpg "Nvidia Stock Climbs to Fresh High After Reports of Custom Chip Unit Plans")
Key Takeaways
- Nvidia shares climbed to a fresh high Friday following reports the company plans to create a new business unit focused on custom chips.
- The new unit could help Nvidia reinforce its position as the world’s most valuable chip company.
- Nvidia is set to report its results for the fourth quarter of fiscal 2024 after the bell on Wednesday, Feb. 21.
Nvidia (NVDA) shares climbed to a fresh high in intraday trading Friday after reports the chipmaker is planning to launch a new business unit focused on custom chips, including those powering artificial intelligence (AI).
The company’s shares were up over 3% at $717.71 per share as of about 2:15 p.m. ET Friday, after rising as high as $718.14 during the session. The stock has gained nearly 50% so far this year.
The chipmaker is reportedly “building a new business unit focused on designing bespoke chips for cloud computing firms and others, including advanced artificial intelligence processors,” Reuters reported Friday, citing sources familiar with the company.
The new unit could help Nvidia capture a piece of the growing market for custom chips as well as reinforce its position as the world’s most valuable chip company amid the AI boom.
The record high comes just days after Nvidia reached its previous high on Monday when Goldman analysts raised their price objective and upgraded their rating to “buy,” citing gains from surging AI demand.
Nvidia, alongside some other “Magnificent 7” companies including Amazon (AMZN), Meta (META), and Alphabet (GOOGL), could lead S&P 500 earnings growth for the first quarter of 2024, Factset projects.
Nvidia is set to report its results for the fourth quarter of fiscal 2024 after the bell on Wednesday, Feb. 21.