Why Nvidia shares are rising again on Tuesday and approaching a record high

Nvidia (NVDA) shares 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 would build the world's largest AI server assembly facility in Mexico to house Nvidia's GB200 chips, part of the Blackwell -AI architecture are.

Foxconn Chairman Young Liu said in an interview with Bloomberg Television that the company aims to produce 20,000 GB200 NVL72 servers at the factory in 2025. HSBC analysts have estimated the price of a GB200 NVL72 server at about $3 million.

Demand for Nvidia's Blackwell system is “terribly high,” said Benjamin Ting, senior vice president of cloud enterprise solutions at Foxconn, at the company's Tech Day. Liu told Bloomberg that demand is “crazy,” echoing Nvidia CEO Jensen Huang's comments last week.

Nvidia has surpassed Microsoft in market value

Nvidia shares rose 3.5% early 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 record closing high of $135.57 set on June 18. Nvidia's intraday all-time high, set on June 20, is $140.76.

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Nvidia shares have more than doubled this year, recovering from a summer low following reports that a design flaw would delay the launch of the Blackwell system. The reports coincided with a selloff in major technology stocks as earnings disappointed and Wall Street questioned the wisdom of massive AI spending.

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