Nvidia shares surged nearly 3% on Tuesday, pushing the chipmaker’s market capitalization past $4.5 trillion and extending its dominance in the artificial intelligence sector. The stock is now up about 39% in 2025, outperforming most megacap peers except Broadcom, which has gained about 40% this year.
The rally follows a series of announcements linking Nvidia more deeply to AI infrastructure growth. OpenAI confirmed last week that Nvidia will take an equity stake of up to $100 billion in the startup and jointly build massive data centers projected to cost $500 billion under the “Stargate” project with Oracle. The facilities are expected to be powered by hundreds of thousands of Nvidia GPUs, which CEO Jensen Huang says account for about 70% of spending in a typical AI data center.
In response to the developments, Citi analysts raised their price target for Nvidia from $200 to $210, citing surging demand for AI infrastructure. “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,” Citi analyst Atif Malik said.
Beyond OpenAI, Meta, Google, and other major tech firms are also accelerating AI investments. On Tuesday, CoreWeave, a cloud provider backed by Nvidia, announced a $14.2 billion deal to supply Meta with AI infrastructure services.
Nvidia’s momentum underscores its central role in the AI boom, with Wall Street viewing it as the backbone of next-generation data centers driving global tech spending.