Nvidia share price went up by more than five per cent on Tuesday. This led to Nvidia’s total value soar past the $3 trillion mark. It is the first time since February that Nvidia has crossed this $3 trillion mark.
Nvidia stock skyrocketed 5.7 per cent and was the biggest single force lifting the S&P 500.
Nvidia CEO Jensen Huang announced a new partnership with Saudi AI company Humain, a deal which will see the latter use Nvidia’s chips for its data centers.
According to a Bloomberg report, the Trump administration may allow UAE to buy over 1 million Nvidia chips. These sales were earlier restricted by Biden's rules on chip exports. This shows that more countries, not just China, are important for Nvidia’s business.
So what’s actually happening with Nvidia?
Nvidia is a technology company that makes highly advanced computer chips. These chips are mainly used for doing tasks related to Artificial Intelligence (AI). Since the beginning of 2023, Nvidia became very valuable, as its market value grew by $2.5 trillion. But now, Nvidia’s stock has tanked down by 22 per cent from its peak value, mostly because of worries about global trade tariffs launched by US president Donald Trump.
The fear of an ensuing economic recession might lead to Nvidia's customers spending less money on buying its chips. Even though computer chips are not taxed under old U.S. tariffs, investors are still worried.
However, big AI companies are still spending a lot on Nvidia’s chips. Nvidia’s latest chip, the H100 GPU, was the most popular for AI in 2023. Nvidia had 98 per cent of the AI chip market in 2023.
Newer chips are coming, Blackwell and Blackwell Ultra series. The latest chip is Blackwell Ultra GB300 coming in the second half of 2025.
These new chips are up to 50 times faster than the H100. Perfect for next-gen AI called “reasoning models”. These models are smarter and cleaner, but take longer to think. Users may leave if the model is too slow, so faster chips are needed.
CEO Jensen Huang claims that the new AI models would need 100 X more power than the current models. More power- hungry models can shoot up chip sales for Nvidia, despite the current global trade tensions.
Some of Nvidia’s high- value clientele include names like Meta (Facebook), Amazon, Microsoft, Google. Together, these tech powerhouses plan to splurge nearly $320 billion in 2025 on just AI infrastructure and chips. Meta even increased its spending plan to $64–72 billion, from a previous range of $60–65 billion.
Nvidia will announce its financial results for the first quarter of fiscal year 2026 which is February–April 2025. Investors are very interested in these results.
Nvidia’s expected revenue is around $43 billion, 65 per cent more than last year. Expected Earnings Per Share is about $0.89, 46 per cent more than last year.90 per cent of the money will come from data center chips used for AI work.
Investors will look at Nvidia’s future forecast next quarter. They want to know, will customers still spend big on AI? Wall Street expects $46.4 billion revenue for the next quarter. If Nvidia predicts less than this, the stock might fall. If Nvidia gives a strong forecast, the stock will likely rise.
Stock is currently cheaper than usual, It trades at a P/E ratio of 40. Its 10-year average P/E ratio is 59.7. If Nvidia reaches its expected earnings of $4.41 per share in 2026, the stock could go up by 126 per cent to match the average.
At Nvidia’s event in March, CEO Huang said, AI data centers will need to spend $1 trillion each year by 2028. Nvidia may also give updates about a future chip called Rubin, Rubin will be 3.3 times faster than Blackwell Ultra. Expected to come out in 2026.
Nvidia’s May 28 report could calm investor fears, prove that customers are still spending on AI chips, and announce powerful new chips for the future. If all this happens, Nvidia’s stock may go up sharply. This may be a great time to invest before the stock rises again.
Why did Nvidia's stock go up recently?
Nvidia's stock rose due to strong global demand, new international deals, and high expectations for its next-generation AI chips.
Will Nvidia’s new Blackwell chips be faster than current ones?
Yes, the Blackwell Ultra chips are expected to be up to 50 times faster than Nvidia’s current H100 chip.
Nvidia stock skyrocketed 5.7 per cent and was the biggest single force lifting the S&P 500.
Nvidia CEO Jensen Huang announced a new partnership with Saudi AI company Humain, a deal which will see the latter use Nvidia’s chips for its data centers.
According to a Bloomberg report, the Trump administration may allow UAE to buy over 1 million Nvidia chips. These sales were earlier restricted by Biden's rules on chip exports. This shows that more countries, not just China, are important for Nvidia’s business.
So what’s actually happening with Nvidia?
Nvidia is a technology company that makes highly advanced computer chips. These chips are mainly used for doing tasks related to Artificial Intelligence (AI). Since the beginning of 2023, Nvidia became very valuable, as its market value grew by $2.5 trillion. But now, Nvidia’s stock has tanked down by 22 per cent from its peak value, mostly because of worries about global trade tariffs launched by US president Donald Trump.
The fear of an ensuing economic recession might lead to Nvidia's customers spending less money on buying its chips. Even though computer chips are not taxed under old U.S. tariffs, investors are still worried.
However, big AI companies are still spending a lot on Nvidia’s chips. Nvidia’s latest chip, the H100 GPU, was the most popular for AI in 2023. Nvidia had 98 per cent of the AI chip market in 2023.
What’s new with Nvidia’s chips?
Newer chips are coming, Blackwell and Blackwell Ultra series. The latest chip is Blackwell Ultra GB300 coming in the second half of 2025.
These new chips are up to 50 times faster than the H100. Perfect for next-gen AI called “reasoning models”. These models are smarter and cleaner, but take longer to think. Users may leave if the model is too slow, so faster chips are needed.
CEO Jensen Huang claims that the new AI models would need 100 X more power than the current models. More power- hungry models can shoot up chip sales for Nvidia, despite the current global trade tensions.
Some of Nvidia’s high- value clientele include names like Meta (Facebook), Amazon, Microsoft, Google. Together, these tech powerhouses plan to splurge nearly $320 billion in 2025 on just AI infrastructure and chips. Meta even increased its spending plan to $64–72 billion, from a previous range of $60–65 billion.
Nvidia will announce its financial results for the first quarter of fiscal year 2026 which is February–April 2025. Investors are very interested in these results.
What can we expect in Nvidia’s May 28 report?
Nvidia’s expected revenue is around $43 billion, 65 per cent more than last year. Expected Earnings Per Share is about $0.89, 46 per cent more than last year.90 per cent of the money will come from data center chips used for AI work.
Investors will look at Nvidia’s future forecast next quarter. They want to know, will customers still spend big on AI? Wall Street expects $46.4 billion revenue for the next quarter. If Nvidia predicts less than this, the stock might fall. If Nvidia gives a strong forecast, the stock will likely rise.
Stock is currently cheaper than usual, It trades at a P/E ratio of 40. Its 10-year average P/E ratio is 59.7. If Nvidia reaches its expected earnings of $4.41 per share in 2026, the stock could go up by 126 per cent to match the average.
At Nvidia’s event in March, CEO Huang said, AI data centers will need to spend $1 trillion each year by 2028. Nvidia may also give updates about a future chip called Rubin, Rubin will be 3.3 times faster than Blackwell Ultra. Expected to come out in 2026.
Nvidia’s May 28 report could calm investor fears, prove that customers are still spending on AI chips, and announce powerful new chips for the future. If all this happens, Nvidia’s stock may go up sharply. This may be a great time to invest before the stock rises again.
FAQs
Why did Nvidia's stock go up recently?
Nvidia's stock rose due to strong global demand, new international deals, and high expectations for its next-generation AI chips.
Will Nvidia’s new Blackwell chips be faster than current ones?
Yes, the Blackwell Ultra chips are expected to be up to 50 times faster than Nvidia’s current H100 chip.
