Wal-Marts stock price rocketed Monday after the retailer said it has agreed to a deal with NVIDIA for its chips.
Wal-mart said the chipmaker’s chips will be on its new SuperServer platform.
The deal, which is expected to close this week, is the latest move in the $4.2 trillion global chip industry, where Nvidia is an investor.
Walmart’s stock has soared in the wake of the announcement.
The announcement came as the tech giant reported a record $4 billion in quarterly profits, or $1.1 billion a day, for the quarter.
AMD, which has a chip business that powers PCs, servers and mobile devices, has been an investor in Nvidia since the company started building its own graphics processors in 2005.
Nvidia has since focused on developing its own chips for mobile devices.
“We’re excited to join forces with Wal- Mart and to deliver this new platform that we know will drive growth and profitability for our customers,” said Jefferies analyst Dan Fung.
A video of the Nvidia SuperServer system is shown at the SuperServer Summit, an annual conference in Austin, Texas, in March.
Nvidia’s SuperServer will power a range of hardware products including chips used in the iPhone, Amazon’s Kindle, Samsung’s Galaxy S4 and the Samsung Galaxy S5, and servers for a range the likes of Amazon, Amazon Web Services and Google.
Wal-Mart, meanwhile, said it is taking the next step in its move into the supercomputing space.
It announced this week it has joined forces with IBM, a chipmaker whose chips are used in some of the world’s biggest supercomputers.
Shares of Nvidia rose as much as 8 per cent Monday to $2.30.