Why Nvidia (NVDA) Stock Is Trading Up Today

What Happened?

Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) jumped 4.9% in the morning session after the stock's positive momentum continued as the company unveiled its new Rubin CPX artificial intelligence (AI) chip, the successor to its latest 'Blackwell' technology. 

The new processor is designed to handle complex functions like creating videos, generating software, and processing massive amounts of information, with the ability to handle context windows larger than one million tokens. Nvidia highlighted the potential for significant returns, stating that a $100 million investment in the new hardware could help customers generate $5 billion in revenue. This announcement reinforces the company's dominant position in the AI chip market, which has been a key driver in making it one of the world's most valuable companies. The stock also benefited from a broader rally among AI chipmakers amid booming demand. 

Separately, a strong outlook from software giant Oracle (ORCL) fueled optimism for companies exposed to artificial intelligence demand. Oracle's shares soared after the company boosted its outlook, citing booming AI demand. This positive sentiment rippled across the semiconductor industry, lifting shares of AI chipmakers like AMD, Nvidia, and Broadcom. The move is also supported by broader strength in the sector, as recent data showed global semiconductor sales hit $62.1 billion in July 2025, a 20.6% year-over-year increase. This growth has been fueled by high demand for data center chips and memory products, reinforcing investor confidence in the industry's prospects.

After the initial pop the shares cooled down to $177.65, up 4% from previous close.

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What Is The Market Telling Us

Nvidia’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock dropped 2.9% on the news that rival Broadcom confirmed a significant partnership with OpenAI, fueling concerns about intensifying competition in the artificial intelligence hardware market. Broadcom announced a $10 billion custom chip deal with OpenAI, a move that highlights a broader trend of major tech companies developing their own processors to cut costs and fine-tune AI performance. This strategy is also being pursued by Alphabet, Amazon, and Meta Platforms. The development prompted analysts at HSBC to caution that the custom silicon market could expand faster than Nvidia's general-purpose GPU business by 2026.

Nvidia is up 28.4% since the beginning of the year, and at $177.65 per share, it is trading close to its 52-week high of $183.16 from August 2025. Investors who bought $1,000 worth of Nvidia’s shares 5 years ago would now be looking at an investment worth $14,430.

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