Nvidia Soars on $500B AI Data Center Deal Rumors

Nvidia Corp. shares surged 8% to a record high on Friday, fueled by reports that the chipmaker is in advanced talks for contracts worth up to $500 billion with major hyperscalers to supply its next-generation Blackwell AI chips. The rumors, first circulated by industry analysts and corroborated by supply-chain sources, highlight surging demand for high-performance computing infrastructure amid the ongoing AI expansion. Trading volume spiked as institutional investors piled in, pushing Nvidia's market capitalization above $3.2 trillion.

The rally underscores the durability of the AI capital-expenditure boom, with hyperscalers like Microsoft Corp. and Amazon.com Inc. reportedly committing to multi-year purchases of Blackwell GPUs to power data centers. This validates projections for a trillion-dollar buildout in AI infrastructure over the next several years, as companies race to train and deploy large language models. Peer Advanced Micro Devices Inc. gained 6%, reflecting broader sector strength, though Nvidia maintains a commanding lead with over 80% market share in AI accelerators.

For traders, key levels to monitor include Nvidia's resistance at $140 and support near $125, with technical charts showing a decisive breakout from a multi-month consolidation pattern—echoing sentiment on X where analysts declared an end to "AI winter" skepticism. Upcoming catalysts include Nvidia's fiscal third-quarter earnings on Nov. 20 and any official contract announcements, which could extend the uptrend or trigger profit-taking if details disappoint. Investors should also watch macroeconomic signals, such as U.S. inflation data, for impacts on tech valuations.