Nvidia shares sold off sharply this spring, fueled by increased worry that spending on artificial intelligence infrastructure, such as Nvidia’s semiconductor chips, was peaking. The argument was that hyperscalers operating massive cloud data centers were overbuilding capacity and double-ordering chips,

Investors continue to underestimate artificial intelligence (AI), the secular tailwinds behind the chipmaker's supercharged growth.

Nvidia stock hit a record high early Thursday after earnings from Microsoft and Meta Platforms reinforced expectations of continued investment in its artificial-intelligence chips. Nvidia shares were up 1.

China's cyberspace regulators have summoned Nvidia over security concerns about its H20 chips. They claim the chips can be tracked and turned off remotely.

The Chinese government fears that H20 GPUs pose a spying risk, but Nvidia says its products do not have backdoors.