On Tuesday, Nvidia stock rose 5% to a record closing price following announcements of new products, collaborations, and investments at its GTC event, bringing it closer than ever to a $5 trillion market valuation.
The company is now valued at $4.89 trillion, just a few months after becoming the first to break the $4 trillion barrier in July.
Nvidia also announced on Tuesday that it’s teaming up with the U.S. Department of Energy to construct seven supercomputers, including one designed with 10,000 of its Blackwell GPUs.
Nvidia’s Huang estimates they could earn over $500 billion in revenue by 2026
Among its other deals, Nvidia will also partner with Uber on autonomous vehicle development, sell 1,000 GPUs to Eli Lilly, and collaborate with Nokia to advance 6G communications.
The semiconductor company, aiming to work on national security applications, also announced new alliances with Palantir and Oracle, as well as with telecom firms such as Cisco and T-Mobile, to support the next wave of 6G infrastructure.
Additionally, the company noted that its AI systems are being utilized to power robotics efforts at firms such as Amazon, Foxconn, Caterpillar, and Belden. The company also rolled out NVQLink, a new open architecture designed to enhance the pace of quantum supercomputer innovation with partners including Rigetti and IonQ.
Moreover, in his keynote address on Tuesday, CEO Jensen Huang projected that Nvidia will generate roughly half a trillion dollars in revenue from its Blackwell chips and the early rollout of Rubin, its next-generation computing platform, by 2026. The firm has already initiated mass production of Blackwell’s most advanced chip alongside Taiwan Semiconductor Manufacturing Co.
Nvidia has made several strategic equity investments in key partners in recent months, as the company has emerged as a central player in the AI world. Last month, it committed a $5 billion investment in one-time rival Intel and announced plans to invest $100 billion in OpenAI. It also committed $500 million in self-driving car startup Wayve and a $667 million investment in U.K. cloud provider Nscale.
Huang says the White House is working on an arrangement that could allow for chip sales in China
A potential trade agreement between Washington and Beijing could work in Nvidia’s favor. A trade deal might allow it to resume chip sales in China. Huang has argued that keeping Nvidia out of the Chinese market would ultimately hurt America more than it hurts China.
He noted, “We want to compete against China, no doubt about that. We want America to win this AI race, no doubt about that … But we also need to be in China to win their developers. A policy that causes America to lose half of the world’s AI developers is not beneficial in the long term.”
The Trump administration is laying the groundwork for regulations that can make the government take up 15% of Nvidia’s China sales, Huang also said during a Q&A session on Tuesday afternoon. But Beijing hasn’t yet decided whether the chips can be repatriated.
Trump and Chinese President Xi Jinping are set to meet in South Korea, renewing optimism for a possible trade agreement between the two economic giants. U.S. Energy Secretary Chris Wright, who joined Huang during Tuesday’s Q&A session, even commented, “I feel quite optimistic that we will have an agreement and arrangement coming out of that will benefit the United States and benefit the world.”
Nvidia’s GPUs are still the backbone of the sprawling data centers that Amazon, Google, and Microsoft are building worldwide. However, its rivals are stepping up, including AMD, which recently signed agreements to deliver up to 6 gigawatts of AI processors to OpenAI and 50,000 GPUs to Oracle. Qualcomm also said it’s joining the AI data center race with new accelerator chips.
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Source: https://www.cryptopolitan.com/nvidias-stock-hits-a-record-high/
