{"id":214013,"date":"2025-06-25T20:10:11","date_gmt":"2025-06-25T20:10:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/214013\/"},"modified":"2025-06-25T20:10:11","modified_gmt":"2025-06-25T20:10:11","slug":"nvidia-shares-hit-record-high-on-renewed-ai-optimism","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/214013\/","title":{"rendered":"Nvidia shares hit record high on renewed AI optimism"},"content":{"rendered":"

Unlock the Editor\u2019s Digest for free<\/p>\n

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/p>\n

Nvidia shares hit a record high on Wednesday, marking a turnaround for the chip company following a rocky start to the year marked by US-China tensions over critical artificial intelligence technology.<\/p>\n

The US chip designer\u2019s shares rose 4 per cent, surpassing an all-time high intraday price set in January. Nvidia moved decisively ahead of Microsoft as the world\u2019s most valuable company, hitting a $3.75tn market capitalisation compared with Microsoft\u2019s $3.65tn.<\/p>\n

The rally came as Nvidia<\/a> chief executive Jensen Huang gave a bullish outlook at the company\u2019s annual shareholder meeting on Wednesday about its ability to continue its explosive growth over the next decade. He cited the \u201cmultitrillion-dollar opportunity\u201d of AI and robotics.<\/p>\n

\u201cWe are at the beginning of a decade-long AI infrastructure build-out: demand for sovereign AI is growing around the world,\u201d Huang told shareholders. <\/p>\n

Concerns that tech giants such as Microsoft and Amazon might pull back on their massive spending on the infrastructure behind AI have abated. During the most recent earnings season, tech companies reiterated their commitment to these investments. <\/p>\n

Nvidia followed this with a solid earnings report<\/a> at the end of May in which it beat Wall Street expectations.<\/p>\n

Nvidia\u2019s stock was dented earlier this year when a breakthrough by China\u2019s DeepSeek led to concerns about the durability of Nvidia\u2019s dominant position in the global AI infrastructure market. That event wiped nearly $600bn<\/a> from the company\u2019s market value.<\/p>\n

Its stock was also knocked after US President Donald Trump introduced new restrictions on Nvidia\u2019s China-specific H20 AI chips<\/a> in his trade conflict with China. <\/p>\n

The move has closed off Nvidia\u2019s access to the Chinese market, which it says could reach $50bn in the coming years. Nvidia is considering a redesign to its Blackwell chips to continue to serve the China market while complying with the export controls.<\/p>\n

\"Line<\/p>\n

Daniel Newman, chief executive of research company Futurum Group, said the rally was \u201cabout the ability of Nvidia to move as fast as it\u2019s moving\u201d.<\/p>\n

\u201cEven though cloud providers like Amazon and Microsoft want to build their own vertically integrated AI infrastructure, right now there\u2019s no situation where the best technology stack isn\u2019t Nvidia,\u201d he said. <\/p>\n

Threats from competitors such as AMD to take market share for advanced AI chips did not matter \u201cif it\u2019s a $400bn market in the next four years\u201d.<\/p>\n

Microsoft alone processed more than five times more requests to AI models such as ChatGPT last quarter compared with the year before, Huang told shareholders on Wednesday.<\/p>\n

Other markets for Nvidia chips are also growing, including so-called neocloud AI companies, which offer access to leading AI chips. Nvidia-backed CoreWeave\u2019s shares are up more than 300 per cent since its listing on Nasdaq in March, reflecting the return to investor optimism around the long-term growth prospects for AI.<\/p>\n

Recommended<\/p>\n

\"Chief<\/a><\/p>\n

Nvidia has committed to an annual release of AI chips and is positioning itself for the launch of Vera Rubin, which will follow its latest Blackwell systems that have seen massive demand, including from sovereign infrastructure deals with Saudi Arabia and the UAE.<\/p>\n

Huang recently toured the Gulf states and Europe, announcing large deals as he touts a new era of \u201caccelerated computing\u201d and promises advances in productivity across all global industries. <\/p>\n

\u201cNvidia is riding a general chip wave,\u201d said G Dan Hutcheson, vice-president at TechInsights, with markets recovering from the impact of Trump\u2019s \u201cliberation day\u201d tariffs and the DeepSeek breakthrough. \u201cNvidia was oversold because of both.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this…\n","protected":false},"author":2,"featured_media":214014,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3163],"tags":[323,1942,53,16,15],"class_list":{"0":"post-214013","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-technology","11":"tag-uk","12":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114745824106687454","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/214013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=214013"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/214013\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/214014"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=214013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=214013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=214013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}