NVIDIA’s market cap surpasses $4.5 trillion thanks to AI

NVIDIA shares rose nearly 3% to a new all-time high, pushing the company’s market capitalization to over $4.5 trillion. Since the beginning of the year, the stock has already gained 39%, and its active participation in the development of artificial intelligence technologies has made NVIDIA a key player in the global industry, CNBC reports.

OpenAI recently announced that it would transfer a stake worth up to $100 billion to NVIDIA and build data centers worth hundreds of billions of dollars using its GPUs. OpenAI is also partnering with Oracle to build five new data centers designed to house hundreds of thousands of GPUs. The total cost of this initiative, called Stargate, is estimated at $500 billion.

According to NVIDIA CEO Jensen Huang, approximately 70% of the total cost of constructing such centers is attributable to the company’s products. Citi analysts raised their price target for the stock from $200 to $210, noting the acceleration of investment in AI infrastructure following OpenAI’s announcements.

NVIDIA isn’t the only one benefiting from the sector’s rapid growth. Major players like Meta and Google are also sharply increasing capital expenditures on data centers. Cloud services provider CoreWeave, in which NVIDIA holds a significant stake, has signed a $14.2 billion contract with Meta to provide AI infrastructure services.

NVIDIA shares are currently one of the best-performing tech giants, second only to Broadcom, whose shares have also risen by approximately 40% thanks to their partnership with OpenAI.