Why NVDA Stock Is Surging Today

Nvidia (NVDA) stock was advancing as much as 5% today after The Financial Times noted that Microsoft (MSFT) had acquired 485,000 Hopper chips from Nvidia this year. That was more than double the 224,000 chips acquired by Meta (META), Nvidia’s second-leading customer in the U.S.

Meanwhile, JPMorgan was upbeat about NVDA stock in a note issued by the bank earlier today. Specifically, NVDA continues to get a lift from high spending on AI accelerators, the bank contended.

And tech website TrendForce reported that the chip maker’s GB200 rack could undergo “mass production and peak shipments” in the second or third quarter of 2025.

Among the potential users of the product are “Tier-2 data centers, national sovereign cloud providers, and academic research institutions” that are involved in high-performance computing and AI, TrendForce reported.

The GB200 will use the fifth generation of Nvidia’s NVLink system which allows GPU chips to quickly interface with each other.

Also noteworthy is that the production of Nvidia’s upcoming Blackwell GPU chips is mostly in-line with expectations., according to TrendForce.

Despite today’s advance by NVDA stock, the shares are little changed over the last six months.

While we acknowledge the potential of NVDA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.