Nvidia Stock Hits New Record as AI Chip Demand Pushes Market Indexes Higher in May 2026

Nvidia's stock reached new record highs in May 2026, pushing major market indexes to new peaks as demand for AI chips continued to grow. The rally came the same week that rival Cerebras Systems debuted on the Nasdaq with a blockbuster IPO.

Nvidia has dominated the market for AI chips since the current AI boom began. Its graphics processing units are used by virtually every major AI company to train and run large language models. The company's market capitalization has grown dramatically over the past two years.

Cerebras Systems, which makes wafer-scale AI processors, raised $5.5 billion in its Nasdaq IPO on May 14, 2026. The stock surged 68 percent on its first day of trading, pushing the company's valuation to nearly $95 billion. Analysts said the strong debut reflects investor appetite for AI hardware alternatives to Nvidia.

CNBC reported that the combined performance of Nvidia and Cerebras in May 2026 reflects the scale of investment flowing into AI infrastructure. Hyperscalers including Meta, Amazon, Microsoft, and Alphabet have collectively earmarked around $725 billion in capital expenditures for 2026, primarily for data centers, custom chips, and AI models.

OpenAI is pursuing custom AI chip development with Broadcom to reduce its reliance on Nvidia, though that effort faces an $18 billion financing hurdle. SpaceX is planning a $55 billion facility in Texas for AI chip manufacturing.

The global semiconductor market is projected to reach $1.5 trillion by the end of the decade. High-performance computing driven by AI is expected to account for more than half of that growth.

Nvidia's CEO Jensen Huang joined President Trump's China visit in May 2026 to preserve market access while navigating U.S. export controls on advanced chips sold to Chinese companies.