Nvidia stock has experienced a significant rally, climbing more than 18% over the past ten days, marking its longest winning streak since a similar ten-day rise in 2023 [1]. Despite this surge, shares remain approximately 8% below the all-time high of $212.19 reached in October, adjusted for the 2024 10-for-1 stock split [1]. The rally is fueled by surging demand for artificial intelligence chips, with major technology companies such as Meta, Amazon, Google, and Microsoft purchasing Nvidia's AI chips in large quantities [1].
At the company's annual GTC conference in March, CEO Jensen Huang revealed that Nvidia has secured over $1 trillion in orders for its graphics processing units (GPUs) through 2027, covering both the current Blackwell and next-generation Vera Rubin GPUs [1]. Nvidia's data center revenue has increased by 75% year-over-year and now constitutes 88% of the company's total business, a dramatic shift from five years ago when gaming was the primary revenue driver [1]. The company is reportedly struggling to keep up with the demand for its AI chips [1].
During the GTC conference, Nvidia introduced new chips designed for AI applications, including a language processing unit developed using technology from its $20 billion acquisition of chip startup Groq in December [1]. Additionally, Nvidia unveiled a standalone rack of its latest Vera central processing units (CPUs), addressing the growing compute needs driven by agentic AI and renewed demand for CPUs [1]. Meta has become the first major customer for Nvidia's standalone CPUs, with a deal announced in February to deploy millions of Nvidia's chips across Meta's global data centers [1].
Nvidia's winning streak coincided with the company's denial of rumors regarding potential talks to acquire a large PC company. Nvidia stated to CNBC that it is "not engaged in discussions to acquire any PC maker." Following these rumors, shares of Dell and HP Inc. initially rose but then lost some gains early Tuesday [1]. On the same day, Nvidia announced a new family of open-source models called Ising, aimed at accelerating the adoption of quantum computing [1].
CONCLUSION
Nvidia's stock rally reflects robust investor confidence driven by unprecedented AI chip demand and substantial long-term GPU orders. The company's strategic product launches and major customer deals, particularly with Meta, underscore its dominant position in the AI hardware market. Nvidia's denial of acquisition rumors and continued innovation further reinforce its market leadership.