NVIDIA's stock rose intraday to $223.75 on Monday before pulling back to around $217. As the market continued to digest the production plans for its next-generation AI chips, the chipmaker's market capitalization briefly surpassed $5.4 trillion, further solidifying its leading position among global tech stocks.
Expectations for Vera Rubin's mass production are heating up
The key factor driving the stock price higher is the market's clearer expectations regarding the mass production timeline and customer demand for the Vera Rubin series of AI chips. The report notes that NVIDIA has largely secured the production schedule and received procurement support from major customers.
Potential recipients of the first shipments include Microsoft, Google, Amazon, Meta, and Oracle. These companies continue to expand their investments in AI infrastructure, with data centers, network equipment, and computing power deployment remaining key priorities for capital expenditure.
NVIDIA’s collaboration with its ODM manufacturing partners has also drawn attention. Over the past few years, the AI boom has surged demand for GPUs, leading to prolonged supply constraints. Recent developments show that NVIDIA continues to strengthen its supply chain capabilities to support the mass production of its next-generation products.
AI spending continues to expand
Over the past year, NVIDIA's stock has risen more than 77%; over three years, the gain is nearly 669%; and over five years, the cumulative increase exceeds 1,480%. In comparison, the S&P 500 index rose approximately 81% during the same periods.
Behind this rally is a shift in NVIDIA’s business focus. The company is no longer just known for gaming GPUs—its data center business has become the primary growth engine. As cloud providers accelerate the deployment of AI systems, NVIDIA’s GPUs continue to power large models developed by organizations such as OpenAI, Anthropic, Google, and Meta.
High valuation accompanied by high expectations
The market currently believes that the AI investment cycle is still in its early stages, and major tech companies will continue to increase spending in this area. This is a key reason why capital continues to favor AI leaders like NVIDIA.
However, some analysts have cautioned that current market expectations for AI growth are already high. If corporate AI spending slows or disruptions reemerge in the semiconductor supply chain, chip stocks that have seen significant prior gains could face pressure.
Currently, Vera Rubin’s advancement provides NVIDIA with a new growth narrative, keeping it at the center of this round of AI infrastructure competition.