Nvidia shares rose on Wednesday after the cloud-computing company Oracle cited strong demand for Nvidia chips in an earnings report.
Nvidia shares rose 3% to $124.52 after the chipmaker’s 1-for-10 stock split took effect after the close of trading on Friday.
According to Oracle’s earnings report released after the close of trading on Tuesday…
Nvidia shares rose on Wednesday after the cloud-computing company Oracle cited strong demand for Nvidia chips in an earnings report.
Nvidia shares rose 3% to $124.52 after the chipmaker’s 1-for-10 stock split took effect after the close of trading on Friday.
In Oracle’s earnings report, released after the close of trading on Tuesday, CEO Larry Ellison said Nvidia chips were being used in a deal to provide ChatGPT developer OpenAl with additional AI training capacity.
Oracle said its capital expenditures, including the cost of building OpenAI’s data centers, are expected to double in 2025. The company did not disclose how many Nvidia chips it will use, but said its infrastructure for training AI models could scale to up to 64,000 Nvidia Blackwell graphics processing units, or GB200 Grace Blackwell superchips.
“Oracle’s renewed momentum may be largely due to the prospect of increased GPU purchases from Nvidia,” Melius Research analyst Ben Reitzes wrote in a research note.
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Nvidia is leading the AI chip race, but other companies are vying for a bigger share of the market.
For example, SK Telecom said on Wednesday it was merging AI chip startup Sapeon with South Korean chip design firm Rebellions to create a “homegrown company” that will lead the global AI race. The two companies aim to complete the merger by the third quarter.
Other chipmakers also rose, with Advanced Micro Devices and Intel rising 0.7% and 1.5%, respectively.
Nvidia shares had risen 144% this year through Tuesday’s close.
S&P 500
It increased by 13%
Nasdaq Composite Index
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It increased by 16%.
Email Adam Clark at [email protected].