Nvidia Shares Hit All-Time High Amid Frenzy Over Next-Gen AI Chips
Nvidia shares surged over 5% on the NASDAQ, reaching a record market cap of $3.1 trillion after the announcement of Rubin Ultra GPUs and a forecast of 20% data center revenue growth next quarter.
from an analytical article based on the provided news about Nvidia stock growth.
Nvidia's Rally: The Real Bet Isn't GPUs, but Total Data Center Control
Headline: Nvidia Shares Hit All-Time High Amid Frenzy Over Next-Gen AI Chips
Brief Context: Nvidia shares rose over 5% on the NASDAQ, hitting a record market cap of $3.1 trillion after unveiling Rubin Ultra GPUs and projecting 20% data center revenue growth next quarter.
Analysis Date: 2026-05-31
[The Gist]: What's Really Happening
The official story: the market soared on the announcement of new Rubin Ultra chips and a 20% revenue growth forecast. That's true, but just the tip of the iceberg. In reality, we're witnessing not just another tech upgrade, but a fundamental shift in Nvidia's revenue structure that Wall Street has only begun to grasp in the last 48 hours.
The key point 90% of commentators miss: the stock surge was triggered less by the Rubin Ultra specs (impressive as they are) and more by Nvidia's quiet but powerful statement about the start of mass shipments of Vera CPUs. The market no longer sees Nvidia as "just an AI GPU maker." The company is morphing into the sole provider of turnkey, comprehensive computing solutions—from graphics accelerators to central processors and network switches. A $5.18 trillion market cap isn't a reflection of current sales; it's an advance payment for a future monopoly on data center architecture.
Timeline and Context
Stock prices accelerated on May 27-29, 2026, driven by two related events:
- Vera CPU Benchmarks: A few days before the rally, benchmark results for the Vera CPU leaked online (likely not accidentally, via partners). The performance was 11% higher than top-tier AMD EPYC and 55% higher than Intel Xeon in single-processor configurations. For institutional investors, this was a signal: the era of x86 dominance in servers is ending.
- Conference Statement: Nvidia CFO Colette Kress officially stated that the CPU segment would bring in about $20 billion in the current fiscal year. To put that in perspective: it instantly makes the company one of the leaders in the server CPU market, virtually from scratch, in a single quarter.
Context from the previous two weeks: the market was in a mild euphoria but also anxious about overheating in the AI sector. The hardware news came just as speculators were looking for a fresh reason to jump in.
Who Wins and Who Loses
Winners:
- Nvidia and its shareholders: The company gets a golden ticket to a new $200 billion TAM (Total Addressable Market). Margins on CPUs and networking gear (NVLink 6, Spectrum-X) are traditionally higher than on GPUs, ensuring profit growth even if GPU revenue growth slows.
- Major cloud providers (AWS, Azure, Google): They get a unified architecture (CPU+GPU) that eliminates the PCIe bus bottleneck. NVLink 6 and the Kyber Rack system remove the data transfer bottleneck between processors. This radically cuts the cost of training giant models (AGI).
- TSMC: The Rubin Ultra is built on TSMC's N2 process. The larger Nvidia's dies (up to 500 billion transistors), the higher the prices and capacity utilization for the Taiwanese manufacturer.
Losers:
- Traditional CPU makers (Intel and AMD): This is the most painful blow. Previously, Intel/AMD supplied the "brain" (CPU) and Nvidia the "muscle" (GPU). Now Nvidia says: "The brain is ours now, and it works better." Nvidia's forecast of $20 billion in CPU revenue is money taken straight off Intel's and AMD's tables in the data center segment.
- Reference system makers (Supermicro, Dell in AI segment): With the shift to Kyber Rack and vertical blades, form factor standards are changing. Nvidia is dictating more rigidly how a server should look, leaving vendors less room for engineering customization.
What the Media Isn't Saying
Insight: The cooling problem isn't solved, and it will become a bottleneck in the next 90 days.
Amid the growth, everyone ignores the power consumption figure. The Rubin Ultra delivers 8 Exaflops of performance, but the TDP of a single NVL144 platform is estimated at 600 kW per rack. That's six times more than previous generations. Moreover, in the leaked benchmarks, Vera's "performance per watt" tests were disabled.
What this means: Even if data centers have the money to buy the chips, they physically can't fit them into old facilities. This creates demand for entirely new liquid cooling infrastructure and suggests that the next bottleneck won't be chips, but contracts with cooling system and electrical substation suppliers. Stocks like Vertiv Holdings (VRT) or Schneider Electric (SU.PA) should rally in Nvidia's wake, but that hasn't happened yet—that's where the real arbitrage lies.
Forecast: Next 30 Days and 90 Days
Next 30 Days:
High volatility with moderate upside. Expect confirmation of Vera orders from major clients (OpenAI, Anthropic, SpaceX). If news of CPU Vera supply contracts worth over $5 billion emerges in the next two weeks, the stock will try to break through $230. However, profit-taking by bulls is possible in June—the market needs to digest the new $5.2 trillion valuation.
Next 90 Days:
The key factor will be the Q3 2026 earnings report. S&P analysts see a consensus forecast for data center revenue of about $183 billion for the fiscal year. If Nvidia shows that Vera CPU is adding real revenue today, not just "in the future," the stock will make a second leap to $250 and above. The main risks are regulatory pressure (exports to China) and the infrastructure constraints mentioned above.
Editorial Forecast
Asset: Nvidia (NVDA) — short-term growth on news flow momentum over the next 24–72 hours.
Key Levels: Support — $211 (May 28 close), resistance — $220, a breakout targets $226–230.
Confidence Level: Medium. The positive momentum is strong, but the market is technically overbought after the recent rally.
Main Risk: A lack of concrete Vera CPU contracts in the press over the weekend could lead to a correction at Monday's open, as "news buyers" start taking profits.
This analysis represents the editorial opinion and is not individual investment advice.
— Editorial Team
