Elon Musk's xAI may place a large order, pushing NVIDIA's stock price to a new all-time high
After NVIDIA released its financial report, the stock price has surged nearly 20% in the following three days, with a market value increase of over $470 billion. The closing price on Tuesday hit a new all-time high. There are reports indicating that Musk's xAI project will utilize NVIDIA's H100 to develop supercomputers
Overnight on Tuesday, Nvidia rose by 7.1% to $1139.01 per share, with a market value of about $2.8 trillion, reaching a record high closing price. Nvidia's stock price has risen for three consecutive days, with a cumulative increase of about 20% over the three days. At midday in the US stock market, Nvidia hit a daily high of $1149.39 per share, rising nearly 8% intraday.
Driven by Nvidia, chip stocks in the US continued the uptrend from last Friday, with the Nasdaq hitting a record high for the third consecutive trading day.
Analysis indicates that Nvidia's surge on Tuesday was due to Musk's actions in the field of artificial intelligence. According to media reports, Musk's AI startup xAI successfully raised $6 billion from investors. Musk plans to connect Nvidia's H100 graphics processor cluster to create an xAI supercomputer, with the chips it connects expected to be four times the size of the largest GPU cluster today. To train the next version of Grok, xAI is expected to need as many as 100,000 GPUs and plans to string these chips together into a supercomputer, also known as a "computing super factory."
As a result of this news, Tesla fell instead of rising, while Nvidia's stock price surged by nearly 8% intraday.
Cantor Fitzgerald analyst CJ Muse stated in an interview that the news about xAI further strengthens the market's confidence in the continuous growth of AI chip spending. He also mentioned that Nvidia's financial report completely dispelled concerns about a potential decline in chip demand for the company in 2024