Merz unveils Nvidia partnership at major investment summit in Berlin

Intel, Nvidia, AMD, and others led a chip stock rebound on Monday, recovering from last week's selloff. Intel rose 6%, Nvidia 2%, and AMD 4%. The iShares Semiconductor ETF gained 4%. JPMorgan upgraded Intel, citing improved execution. Investors await earnings for further signals.

NVIDIA (NVDA) achieved a quantum computing milestone by simulating a 104-qubit fault-tolerant quantum processor on Europe’s JUPITER supercomputer. The simulation, using NVIDIA’s cuQuantum software, validated a fault-tolerant approach requiring 90% fewer physical qubits. NVIDIA aims to cut quantum hardware development time with simulation-guided design. NVDA shares rose 1.54% to $217.42 on Monday.

Ameriprise Financial dropped 4% after Bank of America downgraded it to underperform, citing advisor departures and profit growth concerns. Semiconductor ETF SMH rose 3%, with Nvidia, AMD, Sandisk, and Marvell gaining. CoreWeave climbed 1% after a Goldman Sachs upgrade to buy. Cleveland-Cliffs surged 16% on better-than-expected earnings. Intel gained 4% following a JPMorgan upgrade. Datadog rose 6% after a Bernstein upgrade. Amazon climbed 5% as Morgan Stanley named it a top pick.

Nvidia authorized a $235 billion share buyback, aiming to boost per-share growth through reduced share count and strong cash generation. The company continues investing heavily in AI.

Nvidia CEO Jensen Huang stated that 2 gigawatts of AI capacity is worth $80 billion to the company, up from $18 billion per gigawatt previously. With 43 gigawatts of new AI compute expected in 2027, Nvidia could reach $692 billion in revenue by fiscal 2028 if it captures a portion of the market. Huang noted that land, power, and data center buildings are key obstacles, and new partnerships in Europe may address these challenges.

Modal, a New York-based AI computing startup, is adding Nvidia's Vera CPU to its server lineup, citing doubled AI agent performance. The company's valuation reached $15.75 billion, with $1 billion in projected sales. Modal uses a multi-cloud model and partners with companies like DoorDash and Runway. Nvidia expects $20 billion in Vera chip sales this fiscal year, competing with Intel and AMD.