What's Going On With Nvidia Stock Friday?

Nvidia Corp NVDA CEO Jensen Huang has long claimed that the world’s data centers will need a complete overhaul to handle the demands of generative artificial intelligence (AI).

He estimates it will take $1 trillion over the next four to five years, essentially doubling the existing investment in digital infrastructure, to train and run new AI models, the Financial Times reports. Key contract chipmaker Taiwan Semiconductor Manufacturing Co TSM is weighing rectangular substrates for AI chip packaging to better cater to the AI frenzy.

Broadcom Inc AVGO shares have jumped more than 20% since it reported an AI-driven sales increase, highlighting the increasing importance of high-speed networking in data centers. It is another contender for a $1 trillion valuation.

Also Read: Nvidia Becomes World’s Most Valuable Company, Surpasses Microsoft and Apple: Report

Meanwhile, software maker Oracle Corp ORCL soared 17% following news of a deal to train Microsoft Corp MSFT OpenAI’s large language models on its cloud infrastructure.

Even Hewlett Packard Enterprise Co HPE, previously lagging in AI server demand, saw a 24% stock increase post-earnings.

Nvidia remains the biggest winner, with most of its sales coming from complete servers networked using its proprietary technologies.

Shankar Trivedi, senior vice president of enterprise business, said Nvidia strategically focuses on AI and actively engages with startups and industry partners. In an exclusive interview with CNBC-TV18, Trivedi emphasized Nvidia’s commitment to collaboration over competition. Nvidia maintains an inclusive approach, partnering even with potential competitors.

Nvidia places significant importance on nurturing startups, with an extensive program that spans India and globally.

Wedbush analyst Dan Ives predicts Nvidia to be the first to reach a $4 trillion market cap, as its GPU chips are crucial for AI development.

Nvidia stock gained close to 204% in the last 12 months. Investors can gain exposure to the stock via iShares Russell 1000 Growth ETF IWF and Vanguard Information Tech ETF VGT.

Price Action: NVDA shares traded lower by 1.32% at $129.05 premarket at the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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