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Nvidia Soars 4.93% on AI Investments, Price Hikes

Mover TrackerMonday, May 12, 2025 6:12 am ET
1min read

On May 12, 2025, Nvidia's stock rose by 4.93% in pre-market trading, reflecting strong investor confidence in the company's recent strategic moves and market position.

Nvidia has been actively adjusting its product pricing to maintain profitability. The company has increased the official prices of nearly all its products and allowed partners to raise prices accordingly. For instance, the Asus RTX 5090 high-end graphics card, which was initially priced at 90,000 New Taiwan dollars, has seen its channel price surge to 100,000 New Taiwan dollars, marking a more than 10% increase. Similarly, prices for H200/B200 GPU modules and servers have also been adjusted upward.

In response to the U.S. government's push for "Made in America" initiatives, Nvidia has announced a $50 billion investment in AI server manufacturing in the U.S. over the next four years. This move includes the production of 4nm Blackwell chips at TSMC's Arizona fab, further solidifying Nvidia's commitment to domestic manufacturing.

Nvidia has also expressed concerns about the potential impact of U.S. policies on its global competitiveness. The company warns that restricting chip exports to countries like China could undermine the U.S.'s technological leadership. Additionally, Nvidia's cost management strategies, including price adjustments for H200 and B200 chips, have been driven by the need to offset rising costs and transition to new chip platforms.

Nvidia's strategic investments and market leadership in AI and high-performance computing have positioned it as one of the most valuable companies globally. The company's market value has surged, driven by the increasing demand for AI computing power. Nvidia's dominance in the AI chip market, with an estimated 80% share in AI data centers and large model chips, is a testament to its early investments and innovative software ecosystem, CUDA.

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