Nvidia (NVDA) stock traded above $1,100 for the first time on Tuesday, a move that allowed shares to surpass their previous closing high. Shares ended the day above $1,140.
The milestone moment comes after Elon Musk’s artificial intelligence startup xAI announced Sunday that it had raised $6 billion in a Series B funding round, sending Nvidia shares up as much as 8%. the following trading day.
The wave of AI investments continued to bolster optimism about Nvidia’s growth rate as the chipmaker continues its record stock rally. Last week, Nvidia reported first quarter results that more than impressed Wall Street with adjusted profit up 461% year over year while revenue increased 262%.
According to reports, Musk plans to use Nvidia chips for a new “supercomputer” that will be used to power xAI’s chatbot named Grok.
“xAI will continue this strong trajectory of progress over the coming months, with multiple exciting technology updates and products to be announced soon,” reads Sunday’s blog post.
In addition to bumper 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 release, Nvidia CEO Jensen Huang shrugged off concerns about a future slowdown in demand after the executive said data center growth of the company in the first quarter continued to be fueled “by strong and accelerated demand for training in generative AI”. “
“People want to deploy these data centers right now,” Huang said. “They want to get our (graphics processing units) running right now and start making money and saving money. And so this demand is so strong.”
The company reported record quarterly data center revenue of $22.6 billion, up 427% from last year. In total, data center revenue accounted for 86% of the company’s total revenue for the quarter.
Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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