Nvidia Stock Hits Record High Above $1,100 After AI Startup xAI Raises $6 Billion
Nvidia (NVDA) Stock Hits Record High Above $1,100 as AI Investment Soars
In a historic moment for the tech industry, Nvidia (NVDA) stock soared above $1,100 for the first time ever on Tuesday, closing the day at an impressive $1,140. This milestone comes on the heels of Elon Musk’s artificial intelligence startup xAI announcing a massive $6 billion Series B funding round, propelling Nvidia shares up by as much as 8% in the following trading day.
The surge in AI investment has fueled optimism around Nvidia’s growth potential, with the chipmaker recently reporting jaw-dropping first-quarter results. Adjusted earnings skyrocketed by 461% year over year, while revenue saw a remarkable 262% increase, exceeding Wall Street’s expectations.
According to reports, Musk plans to utilize Nvidia chips for a new “supercomputer” that will power xAI’s chatbot named Grok. In a blog post, xAI expressed excitement for upcoming technology updates and product launches in the coming months.
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.
During an exclusive interview with Yahoo Finance, Nvidia CEO Jensen Huang dismissed concerns about a potential slowdown in demand, citing strong and accelerating interest in generative AI training. The company’s record-breaking Data Center revenue of $22.6 billion, up 427% from the previous year, underscored the growing demand for Nvidia’s products in the AI space.
As Nvidia continues its upward trajectory, investors and industry experts are closely watching the company’s next moves in the rapidly evolving AI landscape. Stay tuned for more updates on this groundbreaking story.
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