NVIDIA surged over 2% following a positive report from Bain & Company, reclaiming a market capitalization of $3 trillion. Shares of NVIDIA rose 2.18%, closing at $123.51 on the New York Stock Exchange on Wednesday, bringing its market capitalization to approximately $3.03 trillion.
The rally was driven by Bain’s report on artificial intelligence (AI), which stated that “companies will need to make unprecedented investments in technology infrastructure to keep up with the AI boom.”
The report further noted, “If the current cost of building a large data center ranges from $1 billion to $4 billion, in five years, the cost could rise to between $10 billion and $25 billion.”
It also emphasized that “as a result, companies will need to accelerate their AI investments, leading to significant profits for data center operators and hardware suppliers.”
The positive outlook contributed to NVIDIA’s impressive surge on the day.
NVIDIA experienced another rally, climbing 3.97%, after news broke that CEO Jensen Huang had completed a stock sale.
Huang has reported these stock sales to the U.S. Securities and Exchange Commission (SEC). According to recent SEC filings, he sold approximately 6 million shares worth about $713 million over the past three months, contributing to downward pressure on NVIDIA’s stock price.
However, with the completion of the stock sale, expectations grew that downward pressure would no longer exist, prompting NVIDIA’s rally the previous day.
As a result, NVIDIA has surged nearly 20% since September 6 and has skyrocketed by 150% this year.