Nvidia share price hit a new all-time high on Tuesday, rising nearly 3 per cent and pushing the chipmaker’s market value above $4.5 trillion. share price ended at $186.58 on September 30, marking a 2.6 per cent rise from the prior day.
The company surpassed a valuation of $1 trillion in May 2023, crossed $2 trillion in February 2024, reached $3 trillion in June 2024, hit $4 trillion in July, and has now climbed to $4.5 trillion.
The shares have gained about 39 per cent so far this year, continuing to draw investor interest as the company accelerates deal-making and strengthens its dominance in the artificial intelligence sector.
What’s behind the rally?
Last week, OpenAI revealed that would take an equity stake worth up to $100 billion in the AI firm and invest in building massive data centers powered by its GPUs. In partnership with Oracle, OpenAI also announced five large-scale data centers, expected to house hundreds of thousands of Nvidia chips, as part of the $500 billion “Stargate” project.
According to CEO Jensen Huang, Nvidia’s products account for roughly 70 per cent of the capital spent on constructing new AI data centers.
OpenAI isn’t the only one making big moves—Meta, Google, and several others are also significantly increasing their infrastructure investments.
On Tuesday, CoreWeave, a cloud provider partly owned by Nvidia, announced a $14.2 billion agreement to deliver AI infrastructure services to Meta.
Citi analysts on Tuesday lifted their price target for from $200 to $210, pointing to a higher outlook for AI infrastructure spending following recent announcements from OpenAI.
“We believe OpenAI came to Nvidia asking for help as Nvidia has a very compelling product, and as the number of users and compute being consumed per user basis is growing,” Citi analyst Atif Malik wrote in the note.
So far this year, Nvidia’s stock has outpaced all other megacap peers, with the exception of Broadcom, which has climbed around 40 per cent, also benefiting from OpenAI-driven momentum.
(With inputs from agencies)
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