Nvidia is up ~2.69% on the pre-market

Nvidia has set a new record high closing at 135.58 at the end of trading on Thursday, June 19.
 

Nvidia’s stock continues to show an outstanding performance with ...

• 3.56% - 1 day performance
   
• 4.65% - 1 week performance
   
• 42.20% - 1 month performance
   
• 173.91% - 1 year performance
   
• 215.08% - 1 year performance
   
• 635.97% - 3 year performance
   

The company's chips continue to be at the center of AI development.  According to Bloomberg, the company's market share is estimated to be between 70% and 95% of the AI chip market.

Nvidia's major customers include Microsoft and Meta (Facebook). Last year, the two companies spent a combined ~$9 billion on H100 chips. 

H100 chip - the most powerful GPU chip on the market today, designed specifically for AI applications. The H100 chip costs about $25,000 each.

Microsoft plans to amass ~1.8 million GPUs by the end of 2024, according to sources cited by Business Insider. A significant portion of these chips could come from Nvidia.

Earlier this year, Meta announced plans to purchase ~350,000 H100-type chips from Nvidia by the end of this year.

The company's customer list also includes names such as Google and Amazon, which each purchased 50,000 chips from Nvidia last year.

In addition to very positive financial results in Q1 2024 and a strong forecast for the next quarter, the company's recent 10-for-1 stock split may have played a key role in Nvidia stock's recent rally.

From the technical prospective

Nvidia is trading above its key simple moving averages (21-, 50- and 100-period SMAs), underscoring a strong bullish trend.

In the premarket, the stock is trading at 139.23 (up 2.69% from yesterday's close).

However, the Relative Strength Index (RSI) is floating in the overbought territory (>70 - overbought; <30 - oversold), signaling a potential technical pullback.