Nvidia this week became the third most valuable company on Wall Street, just behind technology giants Microsoft and Apple.
The American chipmaker saw its value more than triple in 2023 as it capitalized on ongoing demand for Artificial Intelligence.
The stock has continued to rise this year, and investors will expect more when Nvidia reports its fourth-quarter earnings on Wednesday.
The bar has been set high after chief executive Jensen Huang said the group expects to record sales of £16bn during the final three months of 2023.
This is around £11bn more than the group earned in the final three months of 2022.
And there’s also mounting pressure after the company smashed analysts’ forecasts for sales and profits in the first nine months of the year.
Some analysts have said this could hurt him, as expectations are too high.
“The AI train is not only rolling, it’s delivering results, as far as Nvidia is concerned,” said Danni Hewson, head of financial analysis at AJ Bell. “Momentum investors seem happy to get on board, although value seekers are likely to be more reluctant, given the lofty valuation that leaves little room for error.”
For much of the last 30 years, Nvidia’s success has been in computer gaming, with its chips appearing in games like Call of Duty and Counter-Strike.
But its chips are the darlings of AI, which has become a focal point for Silicon Valley’s biggest players. Nvidia has a market capitalization of £1.4 trillion.