After factoring in the 10-for-1 stock split that occurred in 2024, shares rose 3.8% on Tuesday, yet they are currently around 8% below the all-time high of $212.19 reached in October.
This upward trend comes after Nvidia refuted reports on Monday regarding negotiations to acquire a significant PC manufacturer, declaring in a statement to CNBC that it is “not engaged in discussions to acquire any PC maker.” Following the rumors, both Dell and HP Inc. saw a decline in their gains early Tuesday.
With major players like Meta, Amazon, Google, and Microsoft utilizing Nvidia’s silicon, the company’s stock continues to rise amidst soaring demand for AI technology.
According to CEO Jensen Huang at last month’s GTC conference, Nvidia has secured over $1 trillion in orders for its graphics processing units through 2027, which includes the current Blackwell and the upcoming Vera Rubin GPUs.
Nvidia’s data center revenue now represents an impressive 88% of its total operations, a 75% increase from the previous year. This is a notable shift from five years ago when gaming was the primary source of revenue for the company.
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Currently, Nvidia is struggling to ramp up AI chip production efficiently. At March’s GTC event, Nvidia introduced new AI-powered processors, including a language processing unit developed through its $20 billion acquisition of chip company Groq last December.
A stand-alone rack featuring Nvidia’s latest Vera central processing units was also showcased at GTC, reflecting how agentic AI is transforming computing requirements and driving demand for CPUs.
The initial major buyer of Nvidia’s standalone CPUs is Meta. In a comprehensive agreement unveiled in February, Meta committed to deploying millions of Nvidia chips across its various global data centers.
Additionally, last week, Meta expanded its computational capacity by adding $21 billion to a previous $14 billion deal with CoreWeave. This enhancement will allow Meta to utilize Nvidia’s Vera Rubin rack-scale computers in both CoreWeave’s and its own data centers.
Last week, industry leaders like Alphabet CEO Sundar Pichai and Amazon Web Services CEO Matt Garman highlighted the growing demand for AI computing, driven by expanding monetization opportunities.
