Nvidia's Market Value Surges to $4.5 Trillion on Strong Growth and AI Partnerships
Nvidia's market value has soared to approximately $4.5 trillion, reflecting investors' confidence in the company's future growth and leadership in systems and software. The tech giant has reported a significant increase in revenue, with a substantial rise in data center revenue. In a major development, Nvidia and OpenAI have agreed to deploy at least 10 gigawatts of Nvidia systems, with Nvidia investing up to $100 billion in OpenAI.
Nvidia's fiscal second quarter of 2026 saw revenue surge 56% year over year to $46.7 billion, with data center revenue also up 56% to $41.1 billion. The company's CEO, Jensen Huang, expressed confidence in the product cycle, citing extraordinary demand for the Blackwell Ultra platform. Nvidia has also unveiled two major partnerships, driving near-term system shipments and deeper integration with major AI players.
One of these partnerships is with Intel, where Intel will design and manufacture custom x86 data center CPUs and x86 system-on-chips with Nvidia RTX GPU chiplets. As part of this collaboration, Nvidia will invest $5 billion in Intel's common stock at $23.28 per share, pending approvals. Additionally, Nvidia has expanded its share repurchase authorization by $60 billion in late August, after returning $24.3 billion to shareholders in the first half. Looking ahead, Nvidia has guided for third-quarter revenue of about $54 billion (plus or minus 2%) and expects non-GAAP gross margin around 73.5%.
In another significant move, Nvidia and OpenAI have signed a letter of intent to deploy at least 10 gigawatts of Nvidia systems. Nvidia will invest up to $100 billion in OpenAI, with the first gigawatt of Nvidia systems for OpenAI expected in the second half of 2026 using the Vera Rubin platform.
Nvidia's strong financial performance and strategic partnerships, including its collaboration with Intel and investment in OpenAI, position the company for continued growth. Despite challenges in certain markets, Nvidia's leading position in AI technologies and anticipation of sustained growth driven by these strategic investments indicate a promising future for the tech giant.
Read also:
- Mars Petcare Opens Gold-LEED Certified Center, Aims for Carbon Neutrality by 2040
- Planned construction of enclosures within Görlitzer Park faces delays
- Controversy resurfaces following the elimination of diesel filter systems at Neckartor: A renewed conflict over the diesel restriction policy
- Perennial Seeks Growth Marketing & GTM Associate for Carbon Removal Mission
