NEW YORK (Realist English). Nvidia shares surged nearly 3 per cent on Tuesday to a record high, pushing the company’s market capitalization above $4.5 trillion and reinforcing its role as the dominant supplier of chips for artificial intelligence. The stock is now up 39 per cent in 2025, outpacing most of its megacap peers.
Investor enthusiasm was bolstered by a string of announcements linking Nvidia to new infrastructure projects. OpenAI confirmed last week that Nvidia will take an equity stake in the company worth up to $100 billion and will supply hardware for a $500 billion “Stargate” initiative to build five data centers in partnership with Oracle. The facilities are expected to house hundreds of thousands of Nvidia GPUs.
Nvidia chief executive Jensen Huang said the company’s products account for about 70 per cent of spending on new AI data centers, underscoring its central role in the industry’s expansion.
Citi analysts on Tuesday raised their price target for Nvidia shares from $200 to $210, citing a brighter outlook for AI infrastructure investment. “We believe OpenAI came to Nvidia asking for help as Nvidia has a very compelling product, and as the number of users and compute being consumed per user basis is growing,” analyst Atif Malik wrote in a note.
The momentum extends beyond OpenAI. Meta and Google are also increasing capital expenditures on AI hardware. On Tuesday, cloud provider CoreWeave — in which Nvidia holds a significant stake — announced a $14.2 billion deal to supply Meta with AI infrastructure services.
Nvidia’s performance this year has outpaced every other tech giant except Broadcom, another chipmaker benefiting from AI-related demand, whose shares have risen about 40 per cent.