### Nvidia Stock Climbs Amid Strong Demand for AI Servers, Surpasses Microsoft in Market Value

Nvidia's stock surged on Tuesday following optimistic remarks from Foxconn, the global leader in contract electronics manufacturing, regarding the escalating demand for artificial intelligence servers. This demand is set to focus on Nvidia’s advanced GB200 chips, part of the firm's Blackwell AI architecture.

Foxconn, officially known as Hon Hai Precision Industry, revealed at its annual tech day that it is building the world's largest AI server assembly facility in Mexico. The plant will specifically cater to Nvidia's GB200 chips. According to Young Liu, Foxconn's chairman, the company plans to manufacture 20,000 GB200 NVL72 servers at this new factory by 2025. Market analysts from HSBC have estimated the cost of each GB200 NVL72 server to be around $3 million.

Foxconn executives, including Benjamin Ting, the senior vice president of cloud enterprise solutions, highlighted the massive demand for Nvidia's Blackwell system. "The demand is awfully huge," Ting stated, while Liu described it as "crazy" in an interview with Bloomberg Television—a sentiment echoed by Nvidia's CEO Jensen Huang the previous week.

Nvidia's stock rose 3.5% by early Tuesday afternoon, continuing the upward trend from the day before, when the company surpassed Microsoft to become the second-most valuable company in the United States. Trading near $133, Nvidia's shares are approaching their record closing high of $135.57, achieved on June 18, and the all-time intraday high of $140.76, set on June 20.

This year, Nvidia’s shares have more than doubled, recovering from a slump during the summer. The rebound came despite concerns over a potential delay in the Blackwell system rollout due to a reported design flaw, and a broader market sell-off in tech stocks tied to disappointing earnings and skepticism over large-scale AI investments.