NVIDIA shares rise amid global AI infrastructure investments

NVIDIA’s stock has been rising in recent days due to strong demand for AI infrastructure and major investments in new data centers. The opening price on Wednesday was $169.08.

The main driver behind the stock's movement is record demand for AI infrastructure, fueling massive investments in data centers. Analysts at Bernstein estimate total investments in new and upcoming data centers have reached $750 billion. This reinforces the market's bet on NVIDIA as the leading supplier of GPUs, which provide the computing power for AI models.

Institutional investors are also fueling AI infrastructure growth. For example, Germany just announced its first industrial-scale AI cloud solution powered by 10,000 NVIDIA GPUs, backed by BMW, Maserati, and Volvo. Meanwhile, European and Saudi Arabian governments are investing in “AI gigafactories.” This further solidifies NVIDIA's dominance as the monopoly provider of high-performance chips.

But political risks remain. US chip export restrictions to China continue to weigh on expectations. NVIDIA CEO Jensen Huang warned of losing billions in revenue due to these limits. New threats from Trump to impose tariffs on chip shipments to Malaysia and Thailand add uncertainty, as these countries serve as key transit hubs for China.

The daily chart shows a solid long-term uptrend. The market will likely consolidate in coming days (until July 16), possibly with a minor correction, but no substantial decline is anticipated. EMA (20) and EMA (50) are rising, signaling overall bullish market momentum. However, the Stochastic Oscillator is nearing overbought territory, suggesting a potential pullback. Prices are also trading in the upper half of an ascending channel, meaning even if a correction occurs, they’ll likely hold above the channel’s lower boundary. This setup favors renewed upside after a brief dip.

Current recommendation:

Buy NVIDIA at the current price. Take profit — 178.00. Stop loss — 152.50.