Nvidia Eyes New Record High as Shares Surge

Nvidia Corp. (NVDA) is poised to achieve a new record closing high as its shares continue their upward trajectory this year. The stock saw a strong rally of nearly 5% on Tuesday, reaching an intraday high of $490.81. This surge comes as the S&P 500 index (SPX) gained 1.3%.

Last week, Nvidia shares surpassed the $500 mark for the first time, hitting an all-time intraday high of $502.66. However, the gains were slightly scaled back, with the stock closing just below July's record of $474.94. The tech company's market cap is on track to exceed $1.2 trillion for the first time if it closes at $485.83 or higher, according to Dow Jones Market data.

Nvidia has experienced impressive growth, adding $931 billion in market cap since reaching its stock price low in 2022 on October 14. At that time, the company faced significant challenges due to a U.S. ban on AI tech, which required them to replace an estimated $400 million in data-center sales to China. However, they successfully navigated this obstacle and emerged stronger.

In terms of trading activity, Nvidia shares ranked as the second most active on the S&P 500 on Tuesday, with over 51 million shares exchanged. Only Tesla Inc. (TSLA) recorded higher trading volume, with more than 100 million shares traded by afternoon trading.

In another significant development, Nvidia and Alphabet Inc. (GOOG, GOOGL) recently announced their collaboration, with Nvidia's cutting-edge data-center chips powering Google Cloud Platform and its PaxML large language model.

With a remarkable year-to-date gain of 235%, Nvidia shares have far outperformed the broader market. In contrast, the S&P 500 has achieved a modest 17% gain during the same period.