NVIDIA shares were up 2.47% in mid-day trading, extending gains tied to a newly disclosed strategic partnership with Corning that targets the build-out of next-generation AI data center infrastructure.
The companies said they will enter a multiyear commercial and technology partnership aimed at materially increasing U.S.-based manufacturing of advanced optical connectivity solutions for next-generation AI data centers. The agreement calls for three new manufacturing plants to be constructed in North Carolina and Texas, a move market participants interpret as further evidence of NVIDIA's involvement across multiple layers of the AI infrastructure stack.
Part of the move higher reflects a catch-up trade. Despite its long-running leadership in the Semiconductor Index (SOX), NVIDIA has lagged the broader semiconductor sector so far this year amid investor concerns over rising competition.
Sentiment received an additional lift from competitor Advanced Micro Devices. AMD reported earnings and revenue that beat analysts' estimates, and its CEO said there is "accelerating demand for AI infrastructure," a comment that reinforced confidence across chip names and supported a sector-wide lift.
Analyst coverage remains broadly favorable. According to 37 analysts, the consensus rating on NVDA stock is "Strong Buy," with a 12-month price target averaging $270.73. Market participants are also positioning ahead of NVIDIA's fiscal first-quarter earnings report, scheduled for May 20, where analysts expect a consensus of $78.8 billion in revenue, a year-over-year increase of 78.6%.
The equity rally is occurring against a constructive macro backdrop that built on record-setting gains earlier in the week. On Wednesday, May 6, the S&P 500 rose 1.46% to 7,365.09 and the Nasdaq gained 2.03% to 25,838.94, with both indexes closing at record highs. That session's rally was supported in part by hopes of progress toward a U.S.-Iran peace deal, a development that helped push global stocks higher while oil prices declined.
Investor optimism around the AI spending story received another boost from a reported commitment by Anthropic of up to $200 billion to Google Cloud and chips over the next five years, a deal described as representing over 40% of Google's recently disclosed cloud backlog.
Taken together, NVIDIA's Corning partnership - which underscores the company's expanding role across the full AI infrastructure stack - plus AMD's earnings-driven sector momentum, large hyperscaler capex commitments and a risk-on macro environment have combined to keep NVDA elevated in mid-day trading as it approaches its 52-week high of $216.83.
Market context
- Strategic partnership focuses on increasing U.S. manufacturing of optical connectivity for AI data centers via three new plants in North Carolina and Texas.
- Sector momentum was supported by AMD's better-than-expected results and commentary about rising AI infrastructure demand.
- Macro and hyperscaler developments - including an Anthropic commitment tied to Google Cloud and hopeful geopolitical news - contributed to broader risk-on flows.