The tech world is abuzz with the latest developments in artificial intelligence, but Nvidia's stock performance leaves investors divided. Nvidia's stock fluctuated on Wednesday, following the announcement of a significant data center deal.
Nvidia, a leading AI chip manufacturer, secured a contract with Nscale, a British data center operator, to supply AI processors for Microsoft's operations in Europe and the U.S. This deal expands upon Nscale's existing AI infrastructure collaboration with Microsoft. Nscale will provide a whopping 200,000 Nvidia AI processors, including 104,000 GB300 GPUs for a Texas data center campus, starting in Q3 2026.
But here's where it gets interesting: Nvidia's stock price initially rose by 2.7% during the trading session, but later fell slightly to $179.81. This movement occurred despite the company's pivotal role in the AI revolution and its involvement in the $40 billion acquisition of Aligned Data Centers. The acquisition consortium includes the Artificial Intelligence Infrastructure Partnership (AIP), founded by tech giants like BlackRock, MGX, Microsoft, and Nvidia itself.
Aligned Data Centers boasts an impressive portfolio of 50 data center campuses and over 5 gigawatts of capacity across the U.S. and Latin America. This acquisition further solidifies Nvidia's position in the AI landscape.
And this is the part most investors are watching: HSBC upgraded Nvidia's stock to a 'buy' rating and increased its price target to $320. Analyst Frank Lee anticipates Nvidia's AI processors to find demand beyond hyperscalers, driving sustained earnings growth.
So, is Nvidia's stock a buy or a hold? The market seems divided, with some investors cheering the AI megatrend while others remain cautious. What's your take on Nvidia's prospects in the AI-driven future? Share your thoughts in the comments below!
