Nvidia shares have been on a tear, rising more than 18% in the past 10 trading days. This is the artificial intelligence chip giant’s longest consecutive rising period since its 10-consecutive rise in 2023. Nvidia shares rose nearly 3% on Tuesday, but are still about 8% below its all-time high of $212.19 last October, adjusted for a 2024 10-for-1 stock split.
During this streak of gains, Nvidia on Monday denied rumors that it was negotiating to acquire large PC companies and stated that the company "has not negotiated acquisitions with any PC manufacturers." Affected by relevant rumors, Dell and HP's stock prices rose slightly on Monday, but gave up some of their gains in early trading on Tuesday.
On Tuesday, Nvidia also released a new family of open source models called "Ising" designed to accelerate the widespread application of quantum computing.
The chip giant's stock price continues to rise, behind which is the explosive growth in demand for artificial intelligence. Meta, Amazon, Google, Microsoft and other technology giants have rushed to buy Nvidia chips.
At the annual GTC conference held last month, Huang Renxun said that as of 2027, Nvidia's graphics processing unit (GPU) orders will exceed US$1 trillion, covering the current Blackwell series and the next generation Vera Rubin series of GPUs.
NVIDIA's data center business revenue increased by 75% year-on-year, and now accounts for 88% of the company's total business, accounting for a very high proportion. This is in sharp contrast to five years ago, when the gaming business was still the company's largest revenue pillar.
Currently, Nvidia’s artificial intelligence chip production capacity is in short supply. At the GTC conference in March, Nvidia launched a number of artificial intelligence computing chips, including a language processing unit, which is built on technology acquired from Nvidia’s $20 billion acquisition of chip start-up Groq in December last year.
Ben Bajarin, a chip industry analyst at Creative Strategies, said: "We have a serious shortage of computing power supply, which just highlights Nvidia's core concept - computing power is profit."
At the GTC conference, Nvidia also released a stand-alone cabinet equipped with the latest Vera series central processing units (CPUs). With the rise of artificial intelligence, computing power demand has changed, and CPU demand has picked up again.
Meta is Nvidia’s first major customer for independent CPUs. In the blockbuster agreement announced by the two parties in February this year, Meta committed to deploying millions of Nvidia chips in dozens of data centers around the world.
Last week, Meta also cooperated with CoreWeave for an additional US$21 billion, based on the previous US$14 billion cooperation, to expand the scale of computing power. In addition to its own data center, Meta will also use the NVIDIA Vera Rubin cabinet-level system in the CoreWeave data center to further increase its computing power.
Last week, other technology industry executives also expressed the urgent need for more artificial intelligence computing power as the profit opportunities for artificial intelligence continue to expand, including Amazon Cloud Services CEO Matt Garman and Alphabet CEO Sundar Pichai.
Bajarin said the rise in Nvidia's stock price was the market's response to this.
He said: "At present, the supply of computing power and infrastructure is in short supply, and companies need to deploy computing power to achieve artificial intelligence profitability. All Nvidia's layouts are extremely attractive. These are positive signals expected by the market and confirm the sustainability of the industry's growth cycle."