NVIDIA, the chip maker, saw a surge in its stock last week, leading to its CEO, Jensen Huang, predicting that spending on data centers would double in the coming years to support the growing field of artificial intelligence (AI) technology.
Stock Performance
NVIDIA shares increased by 1% in premarket trading on Monday, reaching $728.50. The stock had a record closing high on Friday at $721.33, with a 3.6% jump. Over the past year, NVIDIA’s stock has more than tripled in value, with the recent earnings reports from various tech companies emphasizing the rapid growth of AI technology. NVIDIA’s graphics processing units (GPUs) are the preferred choice for accelerated computing required in AI systems.
Global Infrastructure Expansion
Speaking at the World Government Summit in Dubai, Huang stated that he expects the shift towards accelerated computing to persist, and each country will have to develop its AI infrastructure. He highlighted the current $1 trillion worth of installed data centers worldwide, which will increase to approximately $2 trillion within the next four to five years. This vast expansion will power software globally, and the entire infrastructure will be accelerated.
Positive Trend in Chip Industry
NVIDIA’s stock price rise coincides with other chip makers’ upward trend. Advanced Micro Devices registered an increase of 0.8% while Intel saw a 0.1% rise.
Impressive Stock Growth
In the last month, NVIDIA shares have risen by an impressive 32%. In comparison, the S&P 500 gained 5.1%, and the Nasdaq Composite experienced a 6.8% increase during the same period.