Nvidia’s stock climbed 1.63% following news of a major deal to supply Meta with millions of artificial intelligence (AI) specific chips.
On Wednesday, Nvidia shares closed at 187.98 USD on the New York Stock Exchange, up 1.63%. This pushed the company’s market value to 4.577 trillion USD.
After the regular trading session ended the previous day, Nvidia announced a multi-year, large-scale contract with Meta.
The deal involves Nvidia providing Meta with millions of Blackwell graphic processing units (GPUs) and next-generation AI-specific chips, known as Rubin GPUs.
Sources indicate the contract covers not just GPUs but also central processing units (central processing units (CPUs)).
Nvidia’s announcement comes as Meta is reportedly developing its own AI chips and collaborating with Google.
Industry experts suggest that Meta, facing challenges in its in-house AI chip development, opted for this substantial supply agreement with Nvidia.
The news sparked a 2% rise in Nvidia’s stock during after-hours trading, followed by a 1.63% gain in the regular session.