After-hours buyers may have overindulged: Nvidia Corp (NASDAQ:NVDA, ETR:NVD) shares, fresh from a 4% jump to a record close of $183.61 on Monday, slipped 1% in premarket trading on Tuesday.
Even so, the stock is up 32% this year, valuing the company at $4.46 trillion, the world’s most valuable listed business.
The rally followed news that Nvidia will invest up to $100 billion in OpenAI, marking what CEO Jensen Huang called “the biggest AI infrastructure project in history.”
The partnership will see OpenAI deploy at least 10 gigawatts of Nvidia-powered compute by 2026, dwarfing existing AI data centre projects. Analysts estimate that scale could mean 4–5 million Nvidia GPUs.
The deal cements Nvidia’s dominance in powering AI models, though not without questions. DA Davidson flagged concerns that Nvidia may be “bailing out” OpenAI’s aggressive spending commitments, which already include vast multi-year contracts with Oracle and CoreWeave.
Nvidia’s expansion continues apace: last week it invested $5 billion in Intel, announced plans for a huge UK chip rollout, and signed a $6.3 billion agreement with CoreWeave.
Whether this relentless AI buildout proves bubble or backbone remains the question hanging over the stock.
Ahead of the bell, the shares were $1.73 at $181.88.