Nvidia’s stock surged 3% before the bell on Thursday, solidifying its position as the world’s most valuable company in the semiconductor industry. This was driven by news that partners Dell and Super Micro Computer received server orders for Elon Musk’s AI startup, which contributed to the increase in Nvidia’s shares.
Dell Technologies and Super Micro Computer also saw gains of 3.8% and 4.8%, respectively, as they produce servers with Nvidia chips, meeting the growing demand for processors that power AI applications. This partnership highlights Nvidia’s success in the AI sector, where it generates significant revenue and profits.
Elon Musk announced on his X social media platform that Dell and Super Micro are providing server racks for xAI’s supercomputer, which will enhance the capabilities of its AI tool, Grok. Musk mentioned that the Grok 2 model required about 20,000 Nvidia H100 graphic processing units for training, while the Grok 3 model and future iterations will need 100,000 Nvidia H100 chips. This partnership underscores Nvidia’s continued success in driving innovation in AI technology.
The stock price of Nvidia has nearly tripled this year, significantly boosting the broader market. Super Micro shares have also tripled in value, while Dell’s stock has risen by almost 95%. The Philadelphia SE Semiconductor Index has seen a 34% increase since the recent low in April, reaching an all-time high on Tuesday. Amidst this growth, Nvidia continues to lead as a key player in the semiconductor industry, driven by its success in AI technology and its ability to innovate and adapt to changing market demands.
