Nvidia shares NVDA rebounded on Tuesday, snapping a four-session losing streak as semiconductor stocks recovered from a steep selloff.
At 11:03 AM ET, Nvidia was up 3.14%, reaching around $208.40.
The rally came after the stock lost more than 11% over the previous 30 days amid concerns about the sustainability of the AI investment boom, which has been a major driver of its growth.
The Philadelphia Semiconductor Index also advanced 3%, with several major chipmakers joining the recovery.
AMD climbed 5.9% ahead of its quarterly earnings report, while Intel gained 3.10%. Micron rose nearly 3.65% and Broadcom advanced around 4%.
Jensen Huang’s role in $115 billion Marvell-Lumentum deal
One development drawing attention was Nvidia CEO Jensen Huang’s reported involvement in Marvell Technology’s acquisition of Lumentum Holdings.
According to Bloomberg, Marvell CEO Matthew Murphy and Lumentum CEO Michael Hurlston sought Huang’s views during a phone call before announcing their agreement.
The all-stock transaction values Lumentum at an enterprise value of $115 billion, making it one of the largest technology deals of the year.
Huang’s involvement highlights Nvidia’s growing influence across the AI infrastructure supply chain, particularly as demand for optical networking and faster data-center connections increases.
Nvidia invested $2 billion in each of the two companies earlier this year, underscoring its financial ties with suppliers that play an important role in building AI infrastructure.
Anthropic expansion supports chip demand
Nvidia’s growth outlook also received support from reports that Anthropic plans to nearly double its computing capacity next year.
The AI company expects to have more than 3.5 gigawatts of computing capacity by the end of 2026 and aims to increase that to around 7 gigawatts in 2027, according to a New York Times report.
The expansion reflects the enormous computing requirements of training and operating increasingly powerful AI models.
Anthropic’s infrastructure commitments include significant purchases of computing capacity and chips, with Nvidia among its suppliers.
Samsung Electronics also plans to manufacture base dies for high-bandwidth memory (HBM) chips destined for Nvidia and AMD at its second foundry facility in Taylor, Texas, according to South Korean media reports.
The facility is expected to begin construction this month, with mass production targeted for 2030.
China restrictions and earnings in focus
Separately, Nvidia has reportedly instructed its data-center partners to ensure that at least 51% of their services go to non-Chinese customers.
The Financial Times reported that the guidance applies to future contracts and was communicated verbally through the company’s sales teams.
Nvidia defended the global expansion of American-built AI infrastructure, saying data centers and cloud platforms using US chips are essential for American AI companies to compete worldwide.
Analyst sentiment also remains broadly supportive despite recent volatility.
Melius Research maintained its Buy rating on Nvidia but cut its price target to $315 from $420, citing concerns about the enormous volume of securities that major technology companies may need to issue to finance AI investments.
“The amount of paper is so large it has become the primary risk,” the firm said, according to CNBC.
Investors are now looking toward Nvidia’s fiscal third-quarter earnings report, scheduled for November 17, as the next major catalyst for the stock.
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