Nvidia's Stock Hits New Heights Amid AI Boom

Nvidia has achieved a significant milestone, becoming the first public company to reach a $5 trillion market cap. This surge is largely driven by the ongoing AI craze, with Nvidia's GPUs in high demand for data centers and AI applications.

Stock Surge

• Shares rose over 5.6% on a recent Wednesday, reaching $212.19.
• The increase came after news that U.S. President Donald Trump planned to discuss Nvidia's Blackwell chips with Chinese President Xi Jinping.

Investor Excitement

Investors are also excited about Nvidia CEO Jensen Huang's recent comments:

• The company expects $500 billion in AI chip sales.
• Nvidia is building seven new supercomputers for the U.S. in areas like security, energy, and science.
• These projects will require thousands of Nvidia GPUs.
• Nvidia announced a $1 billion investment in Nokia to launch AI-native 5G-Advanced and 6G networks on Nvidia platforms.

Stock Performance

• Nvidia's stock has surged more than 50% this year.
• Growth is driven by high demand for its GPUs, essential for training large language models and other AI tasks.
• Scarcity of these GPUs and their crucial role in data centers are key factors in Nvidia's success.

Tech Industry Boost

The tech industry has seen a significant boost this year:

• Investors are optimistic about AI's potential to revolutionize various sectors, similar to how the internet changed business.
• Several multibillion-dollar deals have occurred over the past year, many involving Nvidia.
• In September, Nvidia announced a plan to invest up to $100 billion in OpenAI.
• Both companies aim to deploy 10GW worth of Nvidia systems to power OpenAI's systems.