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Nvidia shares jump to latest record – thanks to Elon Musk
Nvidia (NVDA) shares traded above $1,100 for the first time on Tuesday, a move that allowed shares to surpass their previous record close. Shares ended the day above $1,140.
The landmark moment comes after Elon Musk’s artificial intelligence startup xAI said on Sunday it had raised $6 billion in a Series B funding round, sending Nvidia shares up as much as 8% in the following trading session.
The wave of AI investment has continued to boost optimism about Nvidia’s growth rate as the chipmaker continues its record share rally. Last week, Nvidia reported first quarter results this more than impressed Wall Street, with adjusted earnings increasing 461% year over year, while revenue grew 262%.
According to the informationMusk plans to use Nvidia chips for a new “supercomputer” that will be used to power xAI’s chatbot called Grok.
“xAI will continue on this steep trajectory of progress in the coming months, with several exciting technology updates and products to be announced soon,” the Sunday blog post read.
In addition to the stellar profits, Nvidia also announced a 10-for-1 stock split and an increase in its cash dividend – a move that has been echoed by other tech giants in recent quarters.
In an exclusive interview with Yahoo Finance following the company’s earnings report, Nvidia CEO Jensen Huang downplayed concerns about a future slowdown in demand after the executive said the company’s data center growth in the first quarter continued to be fueled “by strong and accelerating demand for generative AI training.”
“People want to deploy these data centers right now,” Huang said. “They want to put our [graphics processing units] work now and start earning money and saving money. And so that demand is very strong.”
The company reported record quarterly data center revenue of US$22.6 billion, an increase of 427% compared to the same period of the previous year. In total, Data Center revenue represented 86% of the company’s total revenue in the quarter.
Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on X @allie_canal, linkedin, and email her at alexandra.canal@yahoofinance.com.
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