Elon Musk’s Influence Sends Nvidia Stock Soaring Above $1,100 for the First Time

Nvidia (NVDA) stock reached a historic milestone on Tuesday as it traded above $1,100 for the first time ever, setting the stage for a potential record-breaking close. This surge in stock price came on the heels of Elon Musk’s xAI announcing a successful $6 billion Series B funding round, propelling Nvidia’s stock up by as much as 8% in the following trading session.

The ongoing wave of investment in artificial intelligence has fueled optimism surrounding Nvidia’s growth prospects, with the chipmaker recently reporting impressive first-quarter results. Adjusted earnings skyrocketed by 461% year over year, while revenue saw a substantial 262% increase, exceeding Wall Street’s expectations.

According to reports from The Information, Musk intends to utilize Nvidia chips for a new “supercomputer” that will power xAI’s chatbot, Grok. The company’s blog post on Sunday hinted at upcoming technological advancements and product launches, further driving excitement among investors.

In addition to its stellar financial performance, Nvidia also announced a 10-for-1 stock split and a boost to its cash dividend, aligning with similar moves made by other tech giants in recent quarters. CEO Jensen Huang expressed confidence in the company’s future prospects, highlighting the strong and growing demand for generative AI training in data centers.

Nvidia’s record-breaking quarterly Data Center revenue of $22.6 billion, marking a 427% increase from the previous year, underscored the company’s dominance in the AI space. With Data Center revenue accounting for 86% of total revenue for the quarter, Nvidia continues to solidify its position as a leader in the rapidly evolving tech industry.