Nvidia's dominance strengthens. Why more highs are ahead

Nvidia’s shares roared 5% higher to a brand-new record of US$201.03 after announcing a suite of new deals at its GTC conference. We cover why more highs are likely ahead.

Nvidia proved it can maintain its market leadership, likely for several years ahead. That means its shares could continue setting new records as it rides the freight train of AI spending. Why?

1 – Nvidia plans to invest US$1 billion in Nokia, one of several new partnerships announced as CEO Jensen Huang dismissed concerns about an AI bubble.

2 – The company will also build a US$1.2 billion data centre in Germany with Deutsche Telekom.

3 – Nvidia announced new collaborations with Uber Technologies and Lucid on autonomous-vehicle development. It also unveiled deals with Palantir Technologies, CrowdStrike, Eli Lilly, and others — reinforcing that Nvidia’s technology remains central to the AI ecosystem.

These moves show that clients are willing to pay premium prices to stay competitive — easing fears of an AI investment bubble and strengthening Nvidia’s dominance. This follows earlier announcements, including a US$5 billion deal with Intel to build AI chips and an agreement with OpenAI, with plans to invest US$100 billion progressively.

What’s suggests Nvidia could post a blowout earnings report on Nov 19, is the surge in chip orders over the past three months. Microsoft and Meta placed massive new orders. Alphabet’s (***) orders rose 39%, and Tesla’s by a similar amount. Major Chinese customers such as Foxconn and Alibaba also placed monumental orders.

All this supports Nvidia’s dominance in the data-centre market, driven by AI and cloud-computing demand, with global spending on these technologies tipped to reach US$4 trillion by 2030.

What about its shares and what's ahead? If you think you’ve missed Nvidia’s 1,400% + share-price rise over the past five years, just imagine what the future could bring as Nvidia and its clients push the limits of what’s possible.

Remember that Nvidia  isn’t just a chipmaker, it’s the cornerstone of the AI revolution, powering everything from data centres to autonomous systems. There are probably more highs ahead for Nvidia’s shares, given that 60% of its revenue comes from the world’s largest clients. But there will also be pull backs in its shares. That's where the real opportunity for investors is. It's about considering accumulating in pullbacks and compounding through each recovery cycle.