Why Nvidia Stock Spiked (Again) on Wednesday

Core Viewpoint - Nvidia's stock surged following positive developments announced at the GPU Technology Conference, indicating strong investor confidence in the company's future growth prospects in AI and related technologies [1][10]. Group 1: Company Developments - Nvidia announced a $1 billion investment in Nokia to collaborate on next-generation 6G cellular technology, marking its entry into a new industry [3]. - CEO Jensen Huang highlighted advancements in AI, robotics, and quantum computing during the keynote address at the GTC [3]. - The backlog for Nvidia's AI-centric Blackwell and Rubin chips has reached $500 billion through 2026, significantly exceeding the lifetime value of its previous-generation Hopper chips [7]. Group 2: Market Reactions - Several Wall Street analysts raised their price targets for Nvidia, with Melius Research's Ben Reitzes setting a target of $300, reflecting a 49% upside from the previous record close [4]. - The consensus estimate for Nvidia's revenue in fiscal 2026 is approximately $207 billion, with expectations of a 286% increase by the end of the decade, driven by anticipated AI infrastructure spending of $2 trillion by 2030 [5]. Group 3: Industry Context - Despite concerns about a slowdown in AI adoption, Nvidia's developments and strong demand for its products have alleviated investor fears [10]. - Data center infrastructure spending by major cloud providers is projected to increase by 43% to $632 billion next year, further supporting Nvidia's market position as a leading provider of data center GPUs [7][8].