Nvidia stock wavered Wednesday after the artificial-intelligence chip leader garnered additional business from British data center operator Nscale.
Nscale announced that it will provide about 200,000 Nvidia AI processors for Microsoft in Europe and the U.S. Dell Technologies is collaborating on the project. The deal is an expansion of Nscale's previous AI infrastructure contract with Microsoft.
In its largest project, Nscale will provide about 104,000 Nvidia GB300 graphics processing units, or GPUs, at a data center campus in Texas, starting in third-quarter 2026.
Nscale also is building AI data centers in Norway, Portugal and the U.K., the company said in a news release.
Nvidia is an investor in Nscale, along with Dell, Nokia and others.
On the stock market today, Nvidia stock fell a fraction to close at 179.83. It is trading just above its 50-day moving average line, a key technical level, according to IBD MarketSurge charts. Earlier in the session, Nvidia stock rose as much as 2.7% to 184.87 before retreating.
Nvidia is one of the primary beneficiaries of the AI megatrend, providing the proverbial picks and shovels for what's been described as the AI gold rush.
$40 Billion Transaction
In other news Wednesday, Nvidia is participating in the $40 billion acquisition of Texas-based Aligned Data Centers from Macquarie Asset Management and its partners.
The buyers of Aligned Data Centers are the Artificial Intelligence Infrastructure Partnership, or AIP, and BlackRock's Global Infrastructure Partners. AIP was founded by BlackRock, MGX, Microsoft and Nvidia, with anchor investors including the Kuwait Investment Authority and Temasek.
The transaction is expected to close in the first half of 2026, subject to regulatory approvals and customary closing conditions.
Aligned's portfolio includes 50 data center campuses and more than 5 gigawatts of operational and planned capacity. It has operations across the U.S. and Latin America, including Northern Virginia, Chicago, Dallas, Ohio, Phoenix, Salt Lake City, Sao Paulo (Brazil), Queretaro (Mexico), and Santiago (Chile).
Nvidia Stock Upgraded
Also on Wednesday, investment bank HSBC upgraded Nvidia stock to buy from hold and hiked its price target to 320 from 200, Seeking Alpha reported.
In a client note, HSBC analyst Frank Lee said he sees the market for Nvidia's AI processors expanding beyond hyperscalers, leading to continuous earnings growth.
Nvidia stock is on three IBD lists: Stock Spotlight, Sector Leaders and Tech Leaders.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
