NVIDIA shares rose nearly 3% to a new record, pushing the company's market capitalization above $4.5 trillion. The stock is up 39% so far this year, and its aggressive push into artificial intelligence has made NVIDIA a central player in the industry, CNBC reports.
OpenAI recently announced that NVIDIA will take a stake in the startup worth up to $100 billion and build hundreds of billions of dollars worth of data centers with NVIDIA GPUs. Additionally, OpenAI is working with Oracle to build five new data centers that will house hundreds of thousands of GPUs. The overall Stargate project is estimated to be worth $500 billion.
According to CEO Jensen Huang, about 70% of the costs of building new AI centers are NVIDIA products. Citi analysts raised their price target on the company's shares from $200 to $210, pointing to increased investment in AI infrastructure after OpenAI's announcements.
NVIDIA isn’t the only one benefiting from this trend: Meta, Google, and others are also sharply increasing infrastructure capital spending. Cloud provider CoreWeave, in which NVIDIA has a significant stake, inked a $14.2 billion deal with Meta for AI infrastructure services.
NVIDIA shares are currently the best performing among megacorporations, second only to Broadcom, whose shares have also risen by about 40% thanks to its collaboration with OpenAI.