Nvidia's stock experienced a significant surge on Monday, reaching an intraday high of $130.99 per share, which propelled its market capitalization above $3 trillion for the first time since February. The jump in stock price, marked by a rise of 6.4%, brought the company's market cap to approximately $3.16 trillion. Despite this recent rally, Nvidia's shares remain down 2.5% for the year.
The increase in Nvidia's stock value is attributed to the announcement of a strategic partnership with Humain, an artificial intelligence firm based in Saudi Arabia and a subsidiary of the country's Public Investment Fund. As part of this collaboration, Nvidia will supply Humain with advanced semiconductors to support the development of AI factories across Saudi Arabia. The initial phase of this initiative will involve the deployment of 18,000 GB300 Grace Blackwell chips, aimed at powering a 500-megawatt AI buildout.
This partnership follows a recent agreement between the United States and Saudi Arabia, in which Riyadh is set to invest $600 billion in American AI and energy infrastructure. The timing of these announcements coincides with Nvidia's recovery in stock valuation, following a period of decline earlier in the year related to broader market sell-offs driven by tariff uncertainties.
Nvidia's resurgence into the $3 trillion market capitalization club reestablishes it alongside tech giants Apple and Microsoft, marking a notable achievement for the company amid fluctuating market conditions. The broader market also reacted positively, with the tech-heavy Nasdaq Composite rising by 2% on the same day, outpacing the S&P 500's 1% gain.