Options Market Statistics: Nvidia Stock Climbs to Fresh High After Reports of Custom Chip Unit Plans, Options Pop

Nvidia 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 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, Meta, and Alphabet, could lead S&P 500 earnings growth for the first quarter of 2024, Factset projects.