The stock of Nvidia, a central company in the artificial intelligence (AI) ecosystem, surged nearly 5% on the 28th (local time) to a record high. Expanding AI investment and announcements of collaboration across the industry spurred market optimism.
On the New York stock market that day, Nvidia closed at $201.03, up 4.98% from the previous session. At one point intraday, it climbed to $203.15, setting a new 52-week high, and it also renewed its all-time closing high since listing. As a result, its market capitalization swelled to $4.885 trillion, putting it on the verge of surpassing $5 trillion.
Nvidia unveiled large-scale AI investment plans and a new technology roadmap at a developer event (GTC) held in Washington, D.C., that day. CEO Jensen Huang said, "AI chips 'Blackwell' and the new model 'Rubin' will drive unprecedented revenue growth through next year," emphasizing, "The AI bubble narrative is baseless."
Huang also said in a Bloomberg TV interview, "There is no AI bubble. A variety of AI models and services are already being used in the real world, and people are willingly paying the expense for them."
Nvidia also announced plans for collaboration with major technology corporations such as Uber, Palantir, and CrowdStrike. Through these partnerships, Nvidia is strengthening its influence across the AI industry and introduced a new system that connects its AI chips to quantum computers.
Meanwhile, Microsoft (MS), the No. 2 by market cap, rose 1.98% on news that it secured a 27% equity in the for-profit institutional sector of OpenAI, the developer of ChatGPT. As of the close that day, its market cap was $4.0292 trillion, narrowing the gap with Nvidia.
Apple's market cap also topped $4 trillion intraday, making it the third to join the $4 trillion club after Nvidia and MS. However, it pared some gains to close up 0.07% at $269.00, with a closing market cap of $3.992 trillion. Strong sales of the iPhone 17 series drove the stock higher.
Major technology corporations such as Amazon (up 1.00%), Broadcom (up 3.02%), and Tesla (up 1.80%) also rose across the board that day. The market expects the growth of the AI industry, centered on Nvidia, to continue.