Nvidia (NVDA, Financial) just proved why it's still the undisputed heavyweight in the AI chip ring. After a tough dip below $130/share, its stock bounced back thanks to promising updates on its Blackwell NVL/GB200 system. Production? On track to peak by mid-2025, according to Trendforce. Investors loved hearing that Nvidia is ironing out cooling and thermal hurdles, and with shares already up 172% this year, the momentum seems unstoppable.
Here's where it gets even juicier: Microsoft (MSFT) has gone all in, snapping up 485,000 of Nvidia's Hopper chips this year—that's more than triple what it bought last year. Why? To cement its position as the king of AI infrastructure. Azure, Microsoft's cloud backbone, is now training OpenAI's latest models, and it's Nvidia's GPUs doing the heavy lifting. Meanwhile, Citi analysts predict Nvidia's foundry capacity will hit 60% in 2025, up from 56% in 2024, signaling that the GPU demand train is nowhere close to slowing down.
But it's not all smooth sailing. Big Tech is cooking up its own AI chips, and geopolitical tensions—especially around U.S. export restrictions—are real hurdles. Still, Nvidia's $3 trillion valuation speaks volumes. The company's laser focus on production milestones and staying ahead in the AI race means it's playing to win. For investors, the message is clear: Nvidia isn't just riding the AI wave—it's driving it.
