Nvidia (NVDA) Soars 5.07% on AI Investments, Price Hikes

On May 12, 2025, Nvidia's stock rose by 5.07% in pre-market trading, reflecting a strong start to the day's trading session.

Nvidia has recently adjusted the official prices of nearly all its products to maintain stable profitability. This move has led to significant price increases for high-end graphics cards and server components, with some products seeing price hikes of over 10%. The company's strategic decision to invest in AI server manufacturing in the U.S. is also expected to bolster its market position and mitigate the impact of rising costs.

Nvidia's dominance in the AI chip market is well-established, with a market share exceeding 80% in AI data centers and large model chips. This leadership is attributed to the company's early investments in GPU technology and the development of its CUDA software ecosystem. However, competitors such as AMD, Huawei, and Qualcomm are rapidly closing the gap, introducing new products and technologies to challenge Nvidia's supremacy.

Despite the competitive landscape, Nvidia's strategic investments and technological advancements continue to drive its growth. The company's focus on AI and high-performance computing positions it well to capitalize on the increasing demand for AI-driven solutions across various industries.