Nvidia News Today: What's Driving the AI Stock Surge

Market Mania or Measured Growth?

The market's been buzzing, no doubt. On November 3rd, 2025, we saw the S&P 500 inch closer to its record high, adding 0.4% in early trading. The Nasdaq Composite did even better, climbing 0.9%. But the Dow Jones Industrial Average? It slipped, down 34 points, or 0.1%. A mixed bag, to say the least.

Nvidia (NVDA) is the name on everyone's lips, and for good reason. Shares surged 2.7%, driving a significant portion of the S&P 500's gains. Loop Capital Markets just upped their price target to a Street-high of $350, hinting at a possible $8.5 trillion market cap. That’s not just a large number; it’s a statement. And the stock's already up over 54% since the start of the year. It makes you wonder if we're seeing rational exuberance or something else entirely.

Then there's Microsoft (MSFT), fresh off a $9.7 billion cloud services deal with IREN (International Renewable Energy Network). IREN shares jumped 24% on the news. (Or, to be precise, 23.87% if you’re watching the decimal dust). The five-year contract, with a 20% prepayment, is all about beefing up Microsoft’s AI capacity. IREN plans to deploy its GB300 processors at its Texas campus in phases through 2026. It all sounds very impressive, but let's not forget Amazon (AMZN), who isn't sitting still either.

The OpenAI Connection: A $38 Billion Bet

Amazon shares hit a record high, jumping over 4% after striking a $38 billion deal with OpenAI. This agreement gives OpenAI access to hundreds of thousands of Nvidia chips. The capacity is expected to be live for OpenAI before the end of 2026, with expansion into 2027 and beyond.

Now, here’s where things get interesting. We're seeing massive capital commitments, but are the underlying businesses truly there to support these valuations? Are these deals truly mutually beneficial, or are they simply a way for Big Tech to flex its financial muscles? (The latter wouldn't be a surprise, given recent history.)

Palantir Technologies (PLTR) is also riding high, gaining another 2% ahead of its quarterly results. The stock's up over 28% since its last report in August and 165% so far this year. It’s a good story, but it begs the question: what's the actual, demonstrable value they're delivering? Because, frankly, I've looked at their financials, and the multiples are, shall we say, ambitious.

Rare Earths, Manufacturing, and the Buffett Succession

Not everything is sunshine and roses, though. Rare earth stocks took a hit after President Trump downplayed the threat to the supply chain from China. MP Materials (MP) and USA Rare Earth (USAR) fell by roughly 4.5% and 6.2%, respectively. Ramaco Resources (METC) and Energy Fuels (UUUU) also traded down. It's a reminder that geopolitical factors can still throw a wrench in the works.

The US manufacturing sector contracted for the eighth consecutive month, with the Purchasing Managers' Index coming in at 48.7 for October, down 0.4 points from September. This is the part of the report that I find genuinely puzzling. If AI is supposedly revolutionizing everything, why isn't it showing up in manufacturing output? Where's the productivity surge?

And then there's Berkshire Hathaway (BRK), which slipped 0.2% after reporting one of its final sets of results under Warren Buffett’s leadership. He’s set to step down as CEO in January. It marks the end of an era. (Although whether the new management will be as adept with capital allocation remains to be seen.)

Is History Rhyming?

The market’s strong appetite for AI growth stories is undeniable. But it’s worth remembering the dot-com era. Back then, companies with little more than a website and a vague promise of future profits were trading at astronomical valuations. Are we seeing a similar dynamic play out with AI stocks? Are investors piling in based on hype and hope, or is there real, sustainable value being created?

The increasing investment in AI by Big Tech firms might suggest that equities still have room to run. But, as Jerome Powell warned last week, we shouldn’t assume another rate cut in December. And while the oil glut is expected to continue through 2026, and bond issuance hasn't exploded in the AI arena, we should remain cautious. As AI optimism drives certain stocks higher, the Dow has slipped, while the Nasdaq has popped Stock market today: Dow slips, Nasdaq pops as AI optimism sends Amazon, Nvidia higher - Yahoo Finance.

A Gut Check on AI Valuations

Ultimately, the question boils down to this: are AI stocks fundamentally overvalued? The enthusiasm is palpable, the deals are massive, and the potential is certainly there. But history teaches us that even the most transformative technologies can be subject to irrational exuberance. The key is to separate the signal from the noise, the substance from the hype.

It's Déjà Vu All Over Again

The market is euphoric, but the underlying data paints a more nuanced picture. Proceed with caution.