NVIDIA's stock price has surged significantly, rising over 18% during the past 10 trading sessions. This marks the chipmaker's longest winning streak since a similar 10-day run in 2023.
On Tuesday, NVIDIA's shares climbed nearly 3%, although the price remains approximately 8% below its all-time high of $212.19, reached last October following a 10-for-1 stock split in 2024.
During this rally, NVIDIA denied rumors on Monday that it was in talks to acquire a major PC manufacturer, stating the company "is not in discussions with any PC maker regarding an acquisition." The speculation had previously caused slight share increases for Dell and HP, which partially reversed during Tuesday's early trading.
Also on Tuesday, NVIDIA introduced a new open-source model series named "Ising," designed to accelerate the adoption of quantum computing.
The sustained rise in the chip giant's stock price is underpinned by explosive growth in artificial intelligence demand, with tech leaders like Meta, Amazon, Alphabet, and Microsoft aggressively purchasing NVIDIA's chips.
At last month's annual GTC conference, CEO Jensen Huang announced that NVIDIA's graphics processing unit (GPU) orders, spanning the current Blackwell series and the next-generation Vera Rubin series, exceed $1 trillion through 2027.
Revenue from NVIDIA's Data Center segment has grown 75% year-over-year and now constitutes an overwhelming 88% of total company revenue. This represents a stark contrast to just five years ago when the Gaming business was the primary revenue driver.
Currently, NVIDIA's AI chip manufacturing capacity is insufficient to meet demand. At the March GTC event, the company launched several new AI computing chips, including a language processing unit developed using technology acquired from the chip startup Groq, which NVIDIA purchased for $20 billion last December.
Ben Bajarin, a chip industry analyst at Creative Strategies, commented, "We are severely supply-constrained on compute, which highlights NVIDIA's core thesis—compute equals profit."
NVIDIA also unveiled standalone cabinets equipped with its latest Vera series central processing units (CPUs) at the GTC conference. Demand for CPUs is resurging due to shifting computational needs driven by the rise of agentic AI.
Meta Platforms, Inc. is the first major customer for NVIDIA's standalone CPUs. A significant agreement announced in February commits Meta to deploying millions of NVIDIA chips across dozens of data centers globally.
Last week, Meta expanded its computational capacity further, adding a $21 billion collaboration on top of a previous $14 billion partnership with CoreWeave. Beyond its own data centers, Meta will leverage NVIDIA's Vera Rubin cabinet-scale systems within CoreWeave's facilities to enhance its computing power.
Other tech executives also emphasized the urgent need for more AI computing capacity last week, citing expanding monetization opportunities. These included Amazon Web Services CEO Matt Garman and Alphabet CEO Sundar Pichai.
According to Bajarin, NVIDIA's stock performance is a direct market response to these dynamics. He stated, "With compute and infrastructure supply being tight and companies needing to deploy compute to monetize AI, everything NVIDIA is doing is very attractive. These are all positive signals the market was looking for, confirming the sustainability of this industry growth cycle."
