It was only three weeks ago that Nvidia (NVDA 1.59%) stock was trading for less than $100 per share. As of early Friday trading, investors have to pay 35% more than that.
This week alone, Nvidia shares have surged 16.2%, according to data provided by S&P Global Market Intelligence. That's because many of the concerns of slowing growth and declining spending for its advanced artificial intelligence (AI) chips have been diminished with new announcements this week.
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Nvidia goes from export restrictions to export boom
Nvidia first announced it would be partnering with Saudi Arabian state-owned AI start-up Humain to build AI factories with up to 500 megawatts (MW) in capacity over the next five years. Nvidia said it would supply "several hundred thousand" of its most advanced GPU chips to power the data centers.
It also doesn't appear that CEO Jensen Huang stopped there on his trip to the Middle East. The U.S. Commerce Department announced the U.S. and United Arab Emirates (UAE) will partner to build a data center campus in Abu Dhabi with a capacity of 5 gigawatts (GW). Reports also said that Nvidia could supply 500,000 AI chips to the project.
NASDAQ: NVDA
Key Data Points
Those announcements quashed concerns of slowing data center sales for Nvidia and sent the stock soaring. Yet there could be much more upside ahead. Several large tech companies in the U.S. have also reiterated plans to continue capital spending for AI infrastructure.
Investors still fearing a growth slowdown may be waiting for the company to provide specific guidance as proof that investments in AI continue at a healthy pace. Yet the market is forward-looking, and the stock may move higher ahead of Nvidia's upcoming quarterly report due on May 28.
It seems to have started that march higher this week, and I'd expect that to continue until that May 28 reporting date.
