Nvidia shares rose about 3% to $188.53 in early trading Friday, putting the stock on track for an eighth straight day of gains.
The rally follows a weaker-than-expected inflation reading for March, which supported markets overall.
The S&P 500 gained 0.2%, extending its own streak of seven days of gains.
Nvidia had already closed higher for seven straight sessions through Thursday, marking its longest streak of gains since November 2023, according to Dow Jones Market Data.
The recent gains are part of a broader move in stocks rather than an Nvidia-specific surge.
Competitor Intel also rose for seven consecutive sessions, gaining around 50% over this period.
In comparison, Nvidia gained around 11% over the same period.
Despite the rally, Nvidia shares remain confined between $165 and $195, a range in which they have been moving for several months.
Investors are looking for catalysts that could push the stock out of this range.
A stabilization of geopolitical conditions is seen as one of these triggers, as ongoing tensions have reduced demand for risky assets.
Questions about AI spending persist
A key question for investors remains the sustainability of spending on artificial intelligence.
Large technology companies – often referred to as hyperscalers – have been the main drivers of demand for Nvidia’s chips, through massive investments in data centers and AI infrastructure.
However, investors are increasingly questioning how long this pace can last and when it will translate into meaningful returns.
Major customers such as Microsoft, Alphabet and Amazon continue to invest aggressively, but confidence in near-term monetization has weakened.
At the same time, software stocks have come under pressure amid concerns that AI will disrupt traditional business models and squeeze margins.
Huang calls for a long-term vision of AI
Jensen Huang used a recent speech at the HumanX conference in San Francisco to argue for a long-term approach to investments in artificial intelligence.
He compared the current phase of AI adoption to the early stages of the Industrial Revolution and encouraged leaders to be patient.
“I would lean toward more playfulness, more open-mindedness, less skepticism, less cynicism, and more willingness to experiment,” Huang said.
“Don’t worry about wasting time, wasting money. There are times when you have to invest without expecting a return. HAS”
He added that too narrow a focus on return on investment could limit discovery opportunities.
Huang’s position mirrors that of Nvidia, at the heart of the AI boom.
The company’s revenue is expected to grow more than tenfold from 2023 levels in the current fiscal year, while maintaining strong profitability.
The broader debate highlights a key tension in the market. While near-term uncertainties related to geopolitics, competition and spending persist, expectations of long-term AI-driven growth continue to support valuations.
