NVIDIA Charges Ahead with EU-Approved Run:ai Acquisition Amid Stock Rebound and New AI Supercomputer Launch

NVIDIA (NVDA) has seen notable trading momentum recently, with a 3.08% increase by the end of last week, marking a consistent two-day streak and a 4.49% gain over the past two days. Over the past week, NVIDIA's stock rose by 0.34%, culminating in a stunning 172.19% surge year-to-date, reaching a market capitalization of $3,298.803 billion.

NVIDIA's strategic acquisition of the Israeli startup Run:ai has received unconditional approval from the European Union. Run:ai specializes in software for managing AI computing resources. The European Commission endorsed this acquisition, highlighting it posed no competitive threat across the EU's 27 member states, despite NVIDIA's status as a leading provider of AI hardware.

This acquisition marks another step in NVIDIA's ongoing collaboration with Run:ai, which began in 2018. While the financial terms of the deal remain undisclosed, estimates suggest a transaction value of $700 million. Prior to this, NVIDIA's major acquisition in Israel was the $7 billion purchase of Mellanox Technologies Ltd. in 2020.

NVIDIA's dominance in the AI chip market has drawn attention globally. Initially popular for gaming, its GPUs are now critical for systems honing large language models. Despite efforts from companies like Amazon to reduce NVIDIA's influence, demand remains robust, with each chip priced in the tens of thousands of dollars.

Recently, NVIDIA's stocks experienced a sharp dip of 15% from their recent peak. This was influenced by Microsoft's comments regarding chip supply constraints. Microsoft's CEO, Satya Nadella, stated that the company had overcome its previous supply limitations and expected favorable conditions by the first half of 2025. This outlook contrasts with NVIDIA's own anticipations, which foresee supply challenges extending into several quarters of 2025 due to persistent demand for their Blackwell chips, underscoring NVIDIA's continued market significance.

On Wednesday, NVIDIA shares rebounded, rising over 4% to $135.99 following the announcement of their latest AI supercomputer, Jetson Orin Nano Super. This new product, priced at $249, is praised for its compact size and enhanced performance, reportedly increasing generative AI capabilities by up to 1.7 times.

Expected to unveil its next-generation GB300 AI server product line in March at the GTC conference, NVIDIA has already seen proactive development from supply partners like Foxconn and Quanta. Closer partnerships with suppliers such as Foxconn, recognized for its vertical integration, have ensured it remains a primary partner for NVIDIA's server projects, reinforcing its role in the upcoming GB300 rollout.

Despite speculations of technical issues with suppliers potentially impacting production, the industry consensus remains optimistic. Drawing parallels with the annual iPhone releases, experts believe any obstacles in the development pipeline will be surmounted promptly to meet launch schedules.