Nvidia’s stock price surged by 3% before the markets opened on Thursday, solidifying its position as the leading semiconductor company in the world. The increase came after partners Dell and Super Micro Computer received orders for servers from Elon Musk’s AI startup. Nvidia’s market capitalization has recently surpassed that of Microsoft, making it worth $3.34 trillion compared to Microsoft’s $3.32 trillion.
Both Dell Technologies and Super Micro Computer experienced gains of 3.8% and 4.8%, respectively, taking advantage of the growing demand for processors that power various AI applications. Musk mentioned on his X social media platform that Dell and Super Micro were providing server racks for xAI’s supercomputer, designed to enhance the capabilities of its AI tool named Grok.
Earlier this year, Musk stated that training the Grok 2 model required about 20,000 Nvidia H100 graphic processing units, with future models like Grok 3 needing 100,000 Nvidia H100 chips. According to Jake Dollarhide, CEO of Longbow Asset Management, Nvidia is making significant profits solely from AI, unlike Microsoft, which both invests and earns income in the AI sector.
Nvidia’s stock price has nearly tripled in value this year, driving the gains in the overall market. Super Micro shares have also more than tripled in value while Dell’s stock has increased by almost 95%. The Philadelphia SE Semiconductor Index has experienced a rise of nearly 34% since its recent low in April, reaching a record high on Tuesday.
