Nvidia's stock price increased 0.7% to $191.36 during Thursday's morning trading, reaching an intraday peak of $193.55. The company continues to serve as a key indicator for artificial intelligence infrastructure investment, with its graphics processing units (GPUs) powering the majority of AI model training and deployment.
Infrastructure Investment Surges
Nebius Group reported a significant quarterly increase in capital expenditures directed toward AI chips and data centers utilizing Nvidia hardware. The company is developing a 240-megawatt data center facility near Lille, France, which is projected to rank among Europe's largest upon completion. Industry estimates suggest AI data center construction costs range between $10 million and $14 million per megawatt, placing the total investment for this project in the multibillion-dollar range.
Supply Chain Developments
In related supply chain news, Samsung Electronics has commenced shipments of its next-generation HBM4 memory chips to unspecified customers. These high-bandwidth memory components are essential for AI accelerators, including those produced by Nvidia. Samsung's chip division CTO described initial customer feedback as "very satisfactory."
Regulatory Landscape
U.S. policy regarding semiconductor exports to China showed nuanced developments. Representative Ro Khanna, the leading Democrat on a House committee overseeing China relations, expressed openness to permitting sales of Nvidia's older Hopper architecture chips to Chinese customers while maintaining restrictions on newer Blackwell and Rubin models. Commerce Secretary Howard Lutnick emphasized that existing regulations governing H200 chip sales contain "very detailed" provisions that Nvidia must adhere to.
Competitive pressures are emerging from multiple directions, including technology clients developing proprietary silicon. ByteDance, TikTok's parent company, is reportedly designing an AI inference chip and has engaged in manufacturing discussions with Samsung, though the company has disputed aspects of this reporting.
Market participants now await Nvidia's fourth-quarter and fiscal 2026 results, scheduled for release on February 25. Investors will scrutinize the report for insights into supply constraints and clarity regarding Chinese shipments under the current regulatory framework.
