Nvidia Corp. shares are surging for a third day as Elon Musk fueled the artificial-intelligence frenzy by accelerating his challenge of OpenAI, extending a post-earnings rally that’s added some US$470 billion to the chipmaker’s market capitalization.
Nvidia stock rose on Tuesday after Musk’s artificial-intelligence startup, xAI, raised US$6 billion from investors. The Information reported that Musk aims to connect groups of Nvidia’s H100 graphics processing units to construct an xAI supercomputer.
Nvidia’s three-day rally has now reached 20% after its blockbuster earnings report impressed investors. The chipmaker said last week that its second-quarter revenue will be about US$28 billion, topping analysts’ expectations and signaling to traders that the runaway surge in stocks linked to AI computing isn’t slowing down yet.
Shares rose 7.1% on Tuesday. The stock, with a market capitalization of about US$2.8 trillion, closed at a record high.
The xAI news gives “further confidence” that AI chip spending will hold up, Cantor Fitzgerald analyst analyst CJ Muse said in an interview. Nvidia’s earnings report “completely defused any notion of an air pocket” in demand for the company’s chips in 2024, he said.
Nvidia has made swings of over US$100 billion commonplace this year, with Tuesday’s surge being at least the seventh since the beginning of 2024 and the stock’s eighth ever.
- Bloomberg
Created by Tan KW | Jul 28, 2024
Created by Tan KW | Jul 28, 2024
Created by Tan KW | Jul 27, 2024