Nvidia Corporation saw its stock price climb approximately 3% in after-hours trading Monday, adding to gains from a sharp rebound late last week. Shares traded as high as $193.58 before settling around $190.40, a move that underscores the chipmaker's central role in the artificial intelligence investment theme.
AI Demand in Focus
The rally was fueled by reports that Apollo Global Management is finalizing a financing deal worth about $3.4 billion. The capital would support an investment vehicle to acquire Nvidia processors for lease to Elon Musk's artificial intelligence venture, xAI. This transaction highlights the intense capital expenditure flowing through the AI supply chain.
Other semiconductor stocks participated in the advance. AMD rose roughly 3.6%, while Broadcom added about 3.5%. Intel, however, edged lower by nearly 0.7%. The VanEck Semiconductor ETF gained approximately 1.4%.
Market Barometer
Analysts note that Nvidia has evolved into a key indicator for whether massive AI infrastructure spending is translating into tangible corporate profits. "We had a sharply oversold market where a little bit of good news can go a long way," observed Keith Lerner of Truist Advisory Services, referring to last week's tech sector decline. Investors are increasingly scrutinizing the payback timeline for these substantial investments.
Additional positive sentiment stemmed from reports that OpenAI's ChatGPT user growth has reaccelerated to over 10% per month, with an updated model expected soon.
Despite the upbeat session, concerns linger. The rally remains sensitive to any signs that AI-related capital returns are being delayed or that end-customer demand may be softening. Furthermore, broader market attention is shifting to upcoming U.S. economic data, which could influence Federal Reserve interest rate expectations.
All eyes are now on Nvidia's fiscal fourth-quarter earnings, scheduled for release after the market closes on February 25. The report is widely anticipated as a critical test for the AI investment narrative and sector momentum.
