Microsoft's significant acquisition of Nvidia's AI chips has been a key driver for Nvidia's stock movement. On December 18, it was reported that Microsoft purchased 485,000 of Nvidia's Hopper AI chips, which is twice as many as its biggest rivals. This substantial purchase underscores the growing demand for Nvidia's advanced AI technology, particularly as Microsoft continues to expand its AI capabilities through its investment in OpenAI.
Additionally, Nvidia's stock has been buoyed by positive analyst sentiment. Analysts have reiterated their confidence in Nvidia's long-term growth potential, with Citi analyst Atif Malik maintaining a 'Buy' rating and a price target of $175. This optimism is further supported by Nvidia's recent innovations, including the introduction of the "Jetson Nano Super" AI chip for robotics applications, which highlights the company's ongoing commitment to leading in AI and GPU technology.
Nvidia's stock is trading at $134.03 in pre-market, reflecting a 2.79% increase from the previous close of $130.39.