What Happened?
Shares of leading designer of graphics chips Nvidia (NASDAQ: NVDA) jumped 4.4% in the afternoon session after the company announced a partnership with Corning to expand AI infrastructure amid strong earnings reports from peer companies in the semiconductor sector.
Nvidia and Corning entered a multiyear commercial and technology partnership to significantly increase U.S.-based manufacturing of advanced optical connectivity solutions for next-generation AI data centers.
The positive sentiment was further boosted by strong results from rival chipmaker Advanced Micro Devices (AMD), which reported earnings and revenue that beat analysts' estimates. AMD's CEO noted "accelerating demand for AI infrastructure," reinforcing investor confidence. This trend was echoed by other semiconductor companies, like Germany's Infineon Technologies, which also raised its sales forecasts due to the ongoing AI boom, lifting the entire sector.
After the initial pop the shares cooled down to $205.38, up 4.6% from previous close.
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What Is The Market Telling Us
Nvidia’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock dropped 2.1% as a broad selloff swept through the semiconductor industry, sparked by concerns over the future of artificial intelligence spending and rising geopolitical risks.
The negative sentiment followed a report from The Wall Street Journal which revealed that the AI firm OpenAI had missed internal targets for both new users and revenue. This news raised investor fears that a key player in the AI space might pull back on its heavy spending on data center infrastructure, potentially reducing demand for chips.
Compounding these worries were escalating tensions between the U.S. and China over AI technology and broader concerns about global supply chain disruptions. The selloff was not isolated, affecting numerous semiconductor and AI-related stocks as investors reacted to the sector-wide headwinds.
Nvidia is up 8.8% since the beginning of the year, and at $205.38 per share, it is trading close to its 52-week high of $216.61 from April 2026. Investors who bought $1,000 worth of Nvidia’s shares 5 years ago would now be looking at an investment worth $14,142.
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