Nvidia’s stock soared to an unprecedented high, trading above $1,100 for the first time on Tuesday and closing over $1,140, setting a new record. This surge was partly driven by news from Elon Musk’s AI venture, xAI, which announced a substantial $6 billion Series B funding on Sunday. Following this announcement, Nvidia’s stock experienced an 8% jump in its value.
The rapid growth in AI investment has heightened expectations for Nvidia, which has seen its stock prices consistently break records. Last week, the company dazzled Wall Street with its first-quarter financials, reporting a 461% spike in adjusted earnings year over year, and a 262% increase in revenue.
Musk’s plans to employ Nvidia chips in a new supercomputer for xAI’s chatbot, Grok, also contributed to the stock’s momentum. An xAI blog post hinted at further exciting technological updates and product launches in the near future.
In response to its performance, Nvidia not only reported stellar earnings but also announced a 10-for-1 stock split and raised its cash dividend, a strategy mirrored by other tech giants recently.
In a post-earnings interview with Yahoo Finance, Nvidia CEO Jensen Huang addressed potential concerns about slowing demand, emphasizing the robust and growing need for generative AI training in data centers. Huang remarked on the immediate demand for deploying Nvidia’s GPUs to capitalize on the opportunities in generating and saving money.
Highlighting its achievements, Nvidia reported a record $22.6 billion in Data Center revenue for the quarter, a staggering 427% increase from the previous year and making up 86% of its total quarterly revenue.
