On Tuesday, shares of Nvidia surged by 4.2%, closing at a record high, following the chip manufacturer’s announcement of a partnership with Google that could expand the distribution of its artificial intelligence technology.

This record close comes less than a week after the company revealed that its quarterly revenues doubled compared to the previous year, and provided a forecast indicating that revenues for this period could increase by 170% on an annual basis.

A day after the surprisingly positive earnings result, Nvidia’s shares reached a record intraday high of $502.66 before retracing in the afternoon.

The relentless ascent of the stock continues, with a remarkable 234% rise in 2023, making it by far the top performer in the S&P 500 index. The second position in the index is held by Facebook’s parent company, Meta, which saw a 148% increase.

Nvidia’s trading is thriving due to the utilization of its graphical processing units, or GPUs, by cloud companies, government agencies, and startups for training and deploying generative AI models, similar to the technology underlying OpenAI’s ChatGPT.

On Tuesday, Nvidia’s CEO, Jensen Huang, appeared at a Google conference to promote the AI agreement between the two companies.

Thanks to this partnership, Google Cloud customers will have enhanced access to technology powered by Nvidia’s powerful GPUs, particularly the H100 model.

“Our expanded collaboration with Google Cloud will help developers accelerate their work with infrastructure, software, and services that enhance energy efficiency and reduce costs,” Huang stated in his blog post.

Nvidia’s GPUs are also available on competing cloud platforms from Amazon and Microsoft.

Source: CNBC.com