Why Nvidia shares are rising again on Tuesday, approaching an all-time high

Nvidia (NVDAStocks rose on Tuesday after Foxconn, the world’s largest contract electronics maker, touted strong demand for artificial intelligence servers.

Executives at Foxconn — officially called Hon Hai Precision Industry — said Tuesday at the company’s annual technology day that they were building the world’s largest facility in Mexico for assembling AI servers to power Nvidia’s GB200 chips, part of to house the Blackwell AI architecture.

Young Liu, chairman of Foxconn, said in an interview with Bloomberg Television that the company aims to produce 20,000 GB200 NVL72 servers at the factory by 2025. HSBC analysts estimate that the price of one GB200 NVL72 server is approximately $3 million.

Demand for Nvidia’s Blackwell system is “terribly high,” Benjamin Ting, Foxconn’s senior vice president of cloud enterprise solutions, said at the company’s technology day. Liu told Bloomberg the question was “crazy,” echoing Nvidia CEO Jensen Huang’s comments last week.

Nvidia surpassed Microsoft in market value

Nvidia shares rose 3.5% on Tuesday afternoon, extending gains from yesterday when the company overtook Microsoft (MSFT) as America’s second most valuable company.

The stock, which traded around $133 on Tuesday, is nearing its all-time high of $135.57, set on June 18. Nvidia’s all-time intraday high, set on June 20, is $140.76.

Nvidia shares have more than doubled this year after recovering from a summer slump amid reports that a design flaw would delay the rollout of the Blackwell system. These reports coincided with a sell-off in major tech stocks as earnings disappointed and Wall Street questioned the wisdom of massive AI spending.

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