Nvidia share price climbs to a record high on OpenAI partnership buzz. Do you own?

Nvidia share price jumped 4% on Monday after the company said it will invest up to $100 billion in OpenAI and supply it with data center chips and other artificial intelligence infrastructure.

Nvidia stock price ended 3.97% higher at $183.61 apiece, after hitting a record high of $184.55 level during the session on Monday. The company's market capitalisation was at $4.46 trillion. In the extended trade, Nvidia shares fell 0.55%.

The strategic deal between Nvidia and OpenAI is meant to help OpenAI build data centers with a capacity of at least 10 gigawatts of power — equipped with Nvidia’s advanced chips to train and deploy AI models.

As part of the deal, Nvidia will receive equity stake in OpenAI against its investment made in cash. The money will be provided in stages, with the first $10 billion coming when the deal is signed. Further increments will follow when each gigawatt of computing power is deployed, Bloomberg reported, quoting sources.

Nvidia will start delivering hardware as soon as late 2026, with the first gigawatt of computing power to be deployed in the second half of that year on its upcoming platform, named Vera Rubin.

Nvidia Share Price Performance

Nvidia share price has now gained about 37% this year, cementing the company’s status as the most valuable business on Earth. While Nvidia shares rose 3% in one month, the stock has rallied over 51% in six months. Over the past five years, Nvidia share price has delivered a staggering 1,300% returns.

Meanwhile, the rally in Nvidia shares and other technology stocks also lifted the Nasdaq to record high. All three major US stock market indexes registered record closing highs for a third straight session on Monday.

The Dow Jones Industrial Average gained 66.27 points, or 0.14%, to 46,381.54, while the S&P 500 rose 29.39 points, or 0.44%, to 6,693.75. The Nasdaq Composite closed 157.50 points, or 0.70%, higher at 22,788.98.

(With inputs from Bloomberg)

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