What's Going On With Nvidia Stock Friday?
Nvidia Corp. (NASDAQ:NVDA) continues to dominate market attention as the artificial intelligence boom accelerates and expands into new frontiers.
Nvidia Becomes First $4.5 Trillion Company On AI Boom
Nvidia has become the first company to surpass a $4.5 trillion market capitalization, overtaking Apple Inc. (NASDAQ:AAPL) and Microsoft Corp. (NASDAQ:MSFT), as demand for its Blackwell chips and CUDA software platform continues to surge.
Investors have rewarded Nvidia for its central role in powering next-generation AI workloads across data centers, cloud platforms and emerging autonomous systems.
Experts See ‘Physical AI’ Driving The Next Growth Wave
Experts say Nvidia’s demand surge is being driven by the AI boom entering a much larger “physical AI” phase that extends beyond chatbots into robots, wearables and autonomous machines.
Futurum Group CEO Daniel Newman said the industry is still in the early stages of this shift, noting that current data-center capacity cannot support the coming wave of enterprise and physical AI workloads, pointing to sustained hardware demand well into the next decade.
Also Read: Nvidia Open-Sources AI That Helps Self-Driving Cars Think Like Humans
I/O Fund analyst Beth Kindig added that rising investment in custom chips from companies like Broadcom Inc. (NASDAQ:AVGO) or Alphabet Inc. (NASDAQ:GOOGL) does not threaten Nvidia’s core position.
She said the AI market is expanding rather than becoming a zero-sum game, with Nvidia retaining a near monopoly in AI training thanks to its CUDA software ecosystem, while rivals mainly compete in inference.
Kindig highlighted surging capital spending as evidence of the buildout, citing Oracle Corp.’s (NYSE:ORCL) projected 2026 capex jump from $9 billion to more than $20 billion as companies bet on an AI monetization inflection point.
China Demand Adds Pressure To Nvidia’s Supply Chain
Policy shifts allowing Nvidia to sell certain chips into China could unlock additional upside, but they also add strain to supply.
Chinese technology companies have ramped up orders for Nvidia’s H200 AI chips, tightening availability as capacity remains limited.
Nvidia has asked Taiwan Semiconductor Manufacturing Co., Ltd. (NYSE:TSM) to boost production after Chinese customers reportedly placed orders for more than 2 million H200 chips for 2026, far above Nvidia’s current inventory of about 700,000 units.
TikTok parent ByteDance alone plans to spend around 100 billion yuan, or $14 billion, on Nvidia chips in 2026.
NVDA Price Action: Nvidia shares were up 1.88% at $190.00 at the time of publication on Friday, according to Benzinga Pro data.
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