CEO Jensen Huang dismisses AI bubble claims, announces major tech partnerships and new AI roadmap

NVIDIA, a central player in the artificial intelligence (AI) ecosystem, saw its stock price surge nearly 5% on the 28th (local time), hitting a record high. Expanded AI investments and industry-wide collaboration announcements fueled market optimism.

On the New York Stock Exchange that day, NVIDIA closed at $201.03, up 4.98% from the previous session. During intraday trading, it briefly reached $203.15, surpassing its 52-week high, and also set a new all-time closing high since its listing. Consequently, its market capitalization swelled to $4.885 trillion, nearing the $5 trillion milestone.

NVIDIA unveiled a large-scale AI investment plan and a new technology roadmap at its developer event (GTC) in Washington, D.C. Jensen Huang, the company's chief executive officer (CEO), stated, "The AI chip 'Blackwell' and the new model 'Rubin' will drive unprecedented sales growth by next year," adding, "The AI bubble theory lacks basis."

In a Bloomberg TV interview, Huang emphasized, "There is no AI bubble. Various AI models and services are already in use in the real world, and people are willingly paying for them."

NVIDIA also announced collaboration plans with major tech companies, including Uber, Palantir, and CrowdStrike. Through these partnerships, NVIDIA aims to strengthen its influence across the AI industry and introduced a new system connecting its AI chips to quantum computers.

Meanwhile, Microsoft (MS), the second-largest by market capitalization, rose 1.98% after news that it had secured a 27% stake in OpenAI's profit-generating division, the developer of ChatGPT. Its market cap at the closing bell stood at $4.292 trillion, narrowing the gap with NVIDIA.

Apple also briefly surpassed a $4 trillion market cap during intraday trading, becoming the third company to join the "$4 trillion club" after NVIDIA and MS. However, it gave up some gains, closing 0.07% higher at $269.00, with a market cap of $3.992 trillion at the close. Strong sales of the iPhone 17 series drove its stock upward.

Major tech firms, including Amazon (up 1.00%), Broadcom (up 3.02%), and Tesla (up 1.80%), also rose in unison. The market anticipates continued growth in the AI industry, led by NVIDIA.

NVIDIA Shares Surge 5%, Near $5 Trillion Market Cap