Nvidia continues to prove the AI doubters wrong by delivering quarter after quarter of breakneck earnings growth, maintaining its high margins, and generating substantial excess cash flow despite increased spending.

Foxconn said that the $1.4 million supercomputing cluster it is building in Taiwan with Nvidia will be ready by the first half of 2026. Once completed, it will be Taiwan’s largest advanced GPU culture.

Laser makers Coherent, Corning, and Lumentum Holdings rose 7.5%, 3.4%, and 3.4%, respectively. Vertiv Holdings, which makes server racks, cabinets, and cooling products, rose 5.1%. And networking equipment company Ciena rose 6.3%. Nvidia itself was up 4.6%.

Elon Musk's AI startup, xAI, will be the inaugural client of a massive Saudi-backed data center powered by hundreds of thousands of Nvidia Corp.'s (NASDAQ: NVDA) chips.

While aging computer chips may feel inconsequential at first blush, they represent the beating heart at the core of the current AI hype. Firms have bet that scaling up these data centers will result in more capable AI models, a major assumption that experts are starting to challenge.

Arm Holdings Plc plans to start incorporating Nvidia Corp.’s NVLink technology into chip designs for AI data centers, tightening the relationship between two influential semiconductor companies.

Nvidia CEO Jensen Huang told employees this week that the company has been pushed into a no-win situation by mounting fears of an AI bubble, even as it continues to post blockbuster results, according to audio of an internal all-hands meeting reviewed by Business Insider.