Nvidia Stock Fluctuates Following New Data Center Agreement
Nvidia’s stock recently experienced fluctuations following a new agreement with British data center operator Nscale. This collaboration will involve the provision of approximately 200,000 Nvidia AI processors for Microsoft in regions including Europe and the U.S.
Nscale’s Major Contract with Microsoft
Nscale’s deal is an extension of its ongoing AI infrastructure partnership with Microsoft. As part of this expansion, Nscale will supply around 104,000 Nvidia GB300 graphics processing units (GPUs) at a data center campus located in Texas, projected to begin in the third quarter of 2026.
Global AI Data Center Expansion
- Nscale is establishing AI data centers in several locations:
- Norway
- Portugal
- The United Kingdom
During the market session, Nvidia’s stock experienced slight declines, settling at 179.81. Earlier in the day, the stock peaked at 184.87, marking a rise of 2.7%. Despite this volatility, Nvidia remains positioned above its critical 50-day moving average, a crucial indicator for investors.
Nvidia’s Role in the AI Market
Nvidia continues to be a significant player in the artificial intelligence sector. The company is often referred to as one of the primary beneficiaries of the AI revolution, providing essential technology for the ongoing AI gold rush. Nvidia is also an investor in Nscale, alongside major corporations like Dell and Nokia.
Acquisition of Aligned Data Centers
In another significant development, Nvidia is participating in a $40 billion acquisition of Aligned Data Centers, located in Texas. This transaction is being led by the Artificial Intelligence Infrastructure Partnership (AIP) and BlackRock’s Global Infrastructure Partners. AIP was founded by prominent investors including Nvidia and Microsoft, with backing from the Kuwait Investment Authority and Temasek.
Details of the Aligned Data Centers Deal
- Transaction expected to close in the first half of 2026, pending regulatory approvals.
- Aligned Data Centers holds 50 data center campuses with over 5 gigawatts of operational and planned capacity.
- Facilities are located across the U.S. and Latin America, including:
- Northern Virginia
- Chicago
- Dallas
- Ohio
- Phoenix
- Salt Lake City
- Sao Paulo, Brazil
- Queretaro, Mexico
- Santiago, Chile
Stock Upgrade and Future Predictions
On the same day, HSBC announced an upgrade of Nvidia’s stock rating from hold to buy, while increasing its price target significantly from $200 to $320. Analyst Frank Lee noted the growing market for Nvidia’s AI processors, expecting consistent earnings growth beyond hyperscale customers.
Nvidia’s stock remains featured on several IBD lists, such as Stock Spotlight, Sector Leaders, and Tech Leaders, reflecting its strong standing in the technology sector.
