Tuesday, NVIDIA's stock once again hit a new all-time high, rising nearly 3%, pushing the leading chip manufacturer's market capitalization past $4.5 trillion. This year, NVIDIA's stock has risen by approximately 39%. As the company accelerates its investments in artificial intelligence, its market performance has drawn significant attention from investors.
Recently, OpenAI announced that NVIDIA will invest up to $100 billion in the form of equity, and plans to build AI data centers worth billions of dollars, which will be equipped with NVIDIA's graphics processing units.
At the same time, OpenAI has also partnered with Oracle to plan the construction of five large new data centers, which are expected to be equipped with hundreds of thousands of GPUs. According to statements from both companies, the total investment in the "Star Gate" project will reach $50 billion. NVIDIA CEO Jensen Huang stated that about 70% of the funds invested in the new AI data centers will be used to purchase NVIDIA products.
In addition, Citigroup analysts have raised their target price for NVIDIA, from $200 to $210. Analysts noted that after a series of announcements from OpenAI, their expectations for spending on AI infrastructure have increased, which is the main reason for raising the target price.
Citigroup analyst Atif Malik stated in his report that OpenAI seeks NVIDIA's support because NVIDIA's products are highly competitive, and due to the increasing number of AI users and the growing demand for computing power per user.
Key Points:
💰 NVIDIA's market capitalization has surpassed $4.5 trillion, and its stock has risen by about 39% this year.
🤖 OpenAI has reached a $100 billion equity investment agreement with NVIDIA, planning to build AI data centers.
📈 Citigroup analysts have raised NVIDIA's target stock price to $210, reflecting the
