Please ensure Javascript is enabled for purposes of website accessibility

Why Cloudflare Stock Jumped Today

By Chris Neiger - Apr 13, 2021 at 3:53PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A new partnership spurred investor enthusiasm for the stock.

What happened

Shares of Cloudflare (NET 1.25%) spiked today after the company announced that it's partnering with graphics processing unit (GPU) maker NVIDIA.

The tech stock was up by 12.7% as of 3:36 p.m. EDT.

So what

Cloudflare said that it will work with NVIDIA to bring artificial intelligence (AI) to its global edge network. Cloudflare has a suite of services that "protect and accelerate" internet applications for companies, and the new partnership will add NVIDIA's AI to some of Cloudflare's services. 

White line and bar graphs on a blue background.

Image source: Getty Images.

"Cloudflare Workers is one of the fastest and most widely adopted edge computing products with security built into its DNA. Now, working with NVIDIA, we will be bringing developers powerful artificial intelligence tools to build the applications that will power the future," Cloudflare co-founder and CEO, Matthew Prince, said in a statement.  

Today's news comes just one day after NVIDIA announced that it will start making its own central processing units (CPUs) for AI data servers. The move will allow NVIDIA to take on Intel even further and adds to the company's dominance in the chip market.

With Cloudflare now working with NVIDIA, investors are likely hoping that the edge computing company will benefit from NVIDIA's continued rise in the artificial intelligence market. 

Now what 

Like most tech stocks, Cloudflare's share price has been all over the map since the beginning of this year. But today's big share price boost helped the company regain some ground it lost over the past few months, and the stock is now up 3% year to date.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Cloudflare, Inc. and NVIDIA. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.5 calls on Intel and short January 2023 $57.5 puts on Intel. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Cloudflare, Inc. Stock Quote
Cloudflare, Inc.
NET
$78.60 (1.25%) $0.97
NVIDIA Corporation Stock Quote
NVIDIA Corporation
NVDA
$188.90 (0.97%) $1.81

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/15/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.