Nvidia co-founder and chief executive Jensen Huang, seen at a special discussion in Dubai, has become the face of the AI chip revolution. Chris Whiteoak / The National
Nvidia co-founder and chief executive Jensen Huang, seen at a special discussion in Dubai, has become the face of the AI chip revolution. Chris Whiteoak / The National
Nvidia co-founder and chief executive Jensen Huang, seen at a special discussion in Dubai, has become the face of the AI chip revolution. Chris Whiteoak / The National
Nvidia co-founder and chief executive Jensen Huang, seen at a special discussion in Dubai, has become the face of the AI chip revolution. Chris Whiteoak / The National

The Nvidia effect: stock surges and Big Tech players scramble for more investments


Alvin R Cabral
  • English
  • Arabic

Several of the technology industry's biggest names have made moves to boost their investments in generative artificial intelligence, indicating that the frenzy for the much-hyped sector isn't slowing down anytime soon.

Masayoshi Son, chief executive of Japanese investment holding company SoftBank Group, is seeking as much as $100 billion to fund an AI chip-making venture, Bloomberg reported on Friday.

While that pales in comparison to the $7 trillion reportedly being sought by OpenAI boss Sam Altman, who has a similar goal of boosting the world’s chip-building capacity to power AI, it is clear that investors see the technology's potential.

Industry major Intel, meanwhile, is reported to be in talks with Washington to receive $10 billion in incentives under the US Chips Act.

This is part of a planned incentives programme to be handed out by the end of March as the world's biggest economy also seeks to accelerate domestic semiconductor manufacturing.

Whether intended or not – people familiar with the SoftBank situation say it is – the market seems to be taking some, or maybe a lot, of pages from the playbook of Wall Street's new darling – Nvidia.

The chip company is riding a hot streak thanks to the generative AI craze.

When the company's market capitalisation crossed the trillion-dollar mark again in August – it first did so in May – its stock had surged 133 per cent over the past 12 months and seven-fold in the last five years.

Since then, the share price of the company founded and led by chief executive Jensen Huang kept skyrocketing and has added a further 65 per cent to hit $726.13 as of Friday's close.

It has swelled so much that California-based Nvidia's market cap, currently at $1.79 trillion, this week surpassed those of two other tech giants – Alphabet and Amazon, placing it behind only Apple and Microsoft.

“The soaring increase in spending on AI has exceeded expectations and tangible results are already being seen,” Antonio Di Giacomo, a market analyst at XS.com, wrote in a note.

“[Nvidia's] central role in this emerging trend is driving its success and positioning it as a key player in today's technology landscape.”

Nasdaq Analyst Research recommends a “strong buy” on Nvidia stock, with estimates as high as $1,200 and as low as $560, based on 40 analysts.

Companies are in fierce competition, "from the race to rule AI to making blockbuster investments”, CB Insights said.

And it's not only Nvidia's direct rivals that are benefiting from the company's ascent to market superstardom.

Even companies acquired by Nvidia are enjoying the AI-fuelled fame – especially after Nvidia on Thursday disclosed its stakes in them.

SoundHound AI, a voice and speech company also based in Silicon Valley, saw its stock surge more than 66 per cent on Thursday alone and nearly two and a half times from a 2023 low last November.

Nvidia invested $3.67 million in SoundHound AI in 2017, as part of a $75 million funding round.

Nano-X Imaging, a medical imaging system company, saw its stock leap more than double in the past two days, adding about $400 million to its market value, and 156 per cent from a November low.

Recursion Pharmaceuticals, in which Nvidia has a $76 million stake, rose more than a third this week, while TuSimple, an autonomous trucking company, more than doubled this week.

The only outlier is Arm Holdings, in which Nvidia has a $147.3 million investment. Nvidia attempted but ultimately failed to acquire the UK-based company from SoftBank in 2022. Arm's stock rose 5.7 per cent on Thursday before retreating 4 per cent on Friday.

“When people say that the market is doing well this year, they really mean that tech is doing well, and Nvidia is at the core of that,” said Keith Lerner, chief market strategist at Truist Advisory Services.

Another key metric to look forward to is Nvidia's fourth-quarter earnings results on February 21.

Wall Street pundits expect revenue in the three months ended January 31 to hit nearly $20.38 billion, which would be a surge of almost three and a half times from a year ago.

“These projections reflect the market's confidence in continued success and growth in the near future,” Mr Di Giacomo said.

THE%20SPECS
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The%20specs
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Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

Company%C2%A0profile
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Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

Countries recognising Palestine

France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra

 

UK-EU trade at a glance

EU fishing vessels guaranteed access to UK waters for 12 years

Co-operation on security initiatives and procurement of defence products

Youth experience scheme to work, study or volunteer in UK and EU countries

Smoother border management with use of e-gates

Cutting red tape on import and export of food

From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

Dust and sand storms compared

Sand storm

  • Particle size: Larger, heavier sand grains
  • Visibility: Often dramatic with thick "walls" of sand
  • Duration: Short-lived, typically localised
  • Travel distance: Limited 
  • Source: Open desert areas with strong winds

Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
RESULT

Bayern Munich 3 Chelsea 2
Bayern: Rafinha (6'), Muller (12', 27')
Chelsea: Alonso (45' 3), Batshuayi (85')

Results
%3Cp%3E%0D%3Cstrong%3EElite%20men%3C%2Fstrong%3E%0D%3Cbr%3E1.%20Amare%20Hailemichael%20Samson%20(ERI)%202%3A07%3A10%0D%3Cbr%3E2.%20Leornard%20Barsoton%20(KEN)%202%3A09%3A37%0D%3Cbr%3E3.%20Ilham%20Ozbilan%20(TUR)%202%3A10%3A16%0D%3Cbr%3E4.%20Gideon%20Chepkonga%20(KEN)%202%3A11%3A17%0D%3Cbr%3E5.%20Isaac%20Timoi%20(KEN)%202%3A11%3A34%0D%3Cbr%3E%3Cstrong%3EElite%20women%3C%2Fstrong%3E%0D%3Cbr%3E1.%20Brigid%20Kosgei%20(KEN)%202%3A19%3A15%0D%3Cbr%3E2.%20Hawi%20Feysa%20Gejia%20(ETH)%202%3A24%3A03%0D%3Cbr%3E3.%20Sintayehu%20Dessi%20(ETH)%202%3A25%3A36%0D%3Cbr%3E4.%20Aurelia%20Kiptui%20(KEN)%202%3A28%3A59%0D%3Cbr%3E5.%20Emily%20Kipchumba%20(KEN)%202%3A29%3A52%3C%2Fp%3E%0A
SUCCESSION%20SEASON%204%20EPISODE%201
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Sly%20Cooper%20and%20the%20Thievius%20Raccoonus
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20Sucker%20Punch%20Productions%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Sony%20Computer%20Entertainment%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%202%20to%205%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%205%2F5%3C%2Fp%3E%0A
RESULT

Shabab Al Ahli Dubai 0 Al Ain 6
Al Ain: Caio (5', 73'), El Shahat (10'), Berg (65'), Khalil (83'), Al Ahbabi (90' 2)

COMPANY%20PROFILE
%3Cp%3ECompany%20name%3A%20Znap%3C%2Fp%3E%0A%3Cp%3EStarted%3A%202017%3C%2Fp%3E%0A%3Cp%3EFounder%3A%20Uday%20Rathod%3C%2Fp%3E%0A%3Cp%3EBased%3A%20Dubai%2C%20UAE%3C%2Fp%3E%0A%3Cp%3EIndustry%3A%20FinTech%3C%2Fp%3E%0A%3Cp%3EFunding%20size%3A%20%241m%2B%3C%2Fp%3E%0A%3Cp%3EInvestors%3A%20Family%2C%20friends%3C%2Fp%3E%0A

A Long Way Home by Peter Carey
Faber & Faber

Kandahar%20
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Teenage%20Mutant%20Ninja%20Turtles%3A%20Shredder's%20Revenge
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Updated: February 18, 2024, 3:00 AM