Nvidia stock leaps to latest record — thanks to Elon Musk

On Tuesday, Nvidia (NVDA) stock broke new ground, trading above $1,100 for the first time ever. This surge allowed shares to surpass their previous record closing high, with the day ending above $1,140.

This milestone moment was fueled by Elon Musk’s AI startup xAI announcing a successful Series B funding round, raising $6 billion. The news sent Nvidia stock soaring by as much as 8% in the following trading day.

The continued influx of AI investments has further bolstered optimism regarding Nvidia’s growth prospects, contributing to its ongoing stock rally. Last week, Nvidia reported impressive first quarter results, with adjusted earnings surging 461% year over year and revenue growing by 262%, exceeding expectations on Wall Street.

According to reports from The Information, Musk has plans to utilize Nvidia chips for a new “supercomputer” that will power xAI’s chatbot named Grok.
According to a blog post on Sunday, xAI is expected to continue making significant progress in the coming months, with the announcement of various exciting technology updates and new products.

In addition to impressive earnings, Nvidia also revealed plans for a 10-for-1 stock split and an increase in its cash dividend. This decision reflects a trend seen among other prominent tech companies in recent quarters.

During an interview with Yahoo Finance following the release of the company’s earnings report, Nvidia CEO Jensen Huang dismissed concerns about a potential future decline in demand. Huang emphasized that the company’s Q1 data center growth was driven by a robust and accelerating demand for generative AI training.

Huang stated that there is a strong desire among customers to deploy these data centers immediately and take advantage of Nvidia’s graphics processing units to generate profits and save costs. The demand for these services is exceptionally high.
In the latest quarter, the company achieved an impressive milestone with its Data Center revenue reaching a record-breaking $22.6 billion. This remarkable figure represents a staggering 427% increase compared to the same period last year. Furthermore, Data Center revenue constituted a significant portion of the company’s total revenue for the quarter, accounting for 86% of the overall figure.