Nvidia's market capitalization exceeded $4.5 trillion
Kyiv • UNN
Nvidia's shares rose by almost 3%, increasing its market capitalization to $4.5 trillion. This happened amid growing investments in AI infrastructure and new deals, particularly with OpenAI and Meta.
Nvidia shares hit a new record on Tuesday, rising almost 3%, which increased the chipmaker's market capitalization to $4.5 trillion, UNN reports with reference to CNBC.
Details
The shares have risen by approximately 39% over the year and continue to attract investors as Nvidia accelerates its deal-making pace, solidifying its position at the center of the artificial intelligence boom.
Last week, OpenAI said Nvidia would acquire a stake in the AI startup for up to $100 billion and build data centers worth hundreds of billions of dollars, equipped with Nvidia GPUs. OpenAI then announced five new large data centers in conjunction with Oracle, which are expected to be equipped with hundreds of thousands of GPUs. According to the companies, the entire Stargate project will cost $500 billion.
OpenAI, Oracle, and SoftBank plan to build five new AI data centers24.09.25, 09:14 • 2953 views
Nvidia CEO Jensen Huang stated that Nvidia's products account for about 70% of the costs for a new AI data center.
Citi analysts on Tuesday raised their price target for Nvidia shares from $200 to $210, citing the forecast for increased spending on AI infrastructure after OpenAI's announcements.
"We believe OpenAI turned to Nvidia for help because Nvidia has a very attractive product, and the number of users and computational power consumed per user is growing," Citi analyst Atif Malik wrote in his note.
OpenAI is far from the only company, as Meta, Google, and other companies are also significantly increasing their infrastructure spending.
CoreWeave, a cloud service provider in which Nvidia is a major shareholder, announced on Tuesday that it had reached an agreement to supply Meta with AI infrastructure services worth $14.2 billion.
Nvidia shares have outperformed all its major peers this year, with the exception of chipmaker Broadcom, whose shares have risen by approximately 40%, also boosted by OpenAI.
OpenAI creates its own AI chip to reduce dependence on Nvidia05.09.25, 10:05 • 5649 views