Nvidia Opens $4.5 Trillion Market Cap Era Amid AI Infrastructure Boom
CoreWeave Announces $14.2 Billion Contract with Meta
As the artificial intelligence (AI) infrastructure boom continues, the market capitalization of US semiconductor company Nvidia surpassed $4.5 trillion on September 30 (local time).
On this day, Nvidia closed at $186.58 on the New York Stock Exchange, up 2.6% from the previous session, setting a new all-time high. Based on the closing price, its market capitalization reached $4.542 trillion, surpassing the $4.5 trillion mark for the first time.
The strong performance of Nvidia's stock is attributed to a series of large-scale data center contracts. On this day, US data center operator CoreWeave announced that it had signed a computing power supply contract worth up to $14.2 billion with Meta Platforms (Meta). As a result, CoreWeave's stock price surged 11.7% on the same day.
CoreWeave explained that through this contract, it would provide Meta with access to Nvidia's latest AI accelerator, the GB300 system. CoreWeave generates revenue by building and leasing data centers equipped with Nvidia's graphics processing units (GPUs), which are essential for AI model training and large-scale AI computation.
Previously, CoreWeave also announced an expanded contract with OpenAI. On September 25, CoreWeave added up to $6.5 billion to its data center capacity supply contract with OpenAI, bringing the total contract value to $22.4 billion.
Through this contract with Meta, CoreWeave is diversifying its customer base. Michael Intrator, CEO of CoreWeave, said, "At the time of our initial public offering (IPO), we were undervalued due to customer concentration. This contract is a clear step toward customer diversification." Until now, CoreWeave's largest customer had been Microsoft (MS). As of the second quarter, Microsoft accounted for 71% of CoreWeave's revenue.
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Louis Navellier, founder and chief investment officer (CIO) of US investment advisory firm Navellier & Associates, commented on the CoreWeave-Meta contract, saying, "This is yet another major announcement amid the AI frenzy," and added, "If AI is a bubble, then that bubble is still growing."
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