Nvidia Stock Rises Amid Global Chip Rally

Nvidia stock continued its upward momentum on Monday, as the global chip rally surged, with Taiwan Semiconductor Manufacturing reaching a record high.

Nvidia's Market Performance

Nvidia shares climbed 1.2% to $833 in premarket trading on Monday, following a 4% increase to $822.79 on Friday. The market cap of the company reached $2.06 trillion.

Suppliers' Performance

One of Nvidia's main suppliers, TSMC, soared 5.2% in Taiwan trading to close at a record high. Additionally, Samsung Electronics and SK Hynix experienced gains in Korean trading, with increases of over 2% and 6.6%, respectively.

U.S. Chip Makers' Performance

The positive momentum in Asian trading spilled over to U.S. chip makers, with Intel rising by 0.8%, Micron Technology by 1.7%, and Qualcomm by 0.7%. However, Advanced Micro Devices saw a slight dip of 0.3% following a more than 5% surge on Friday.

Earnings Impact

Dell Technologies' earnings report highlighted strong demand for Nvidia's chips, particularly for their artificial-intelligence servers powered by Nvidia and AMD chips. While Dell saw a significant increase of 32%, AMD outperformed its rival on Friday with a 5.3% climb.

Year-to-Date Performance

Nvidia's shares have increased by 66% this year, outperforming the S&P 500's gain of 7.7% and the Nasdaq Composite's gain of 8.4% over the same period.