Welcome to Extreme Investor Network, where we bring you the latest updates and insights in the world of finance. Today, we’re diving into the recent milestone achieved by Nvidia (NVDA) stock, which traded above $1,100 for the first time ever on Tuesday.
This significant move allowed Nvidia shares to surpass their previous record closing high, finishing the day above $1,140. The catalyst for this surge came after Elon Musk’s artificial intelligence startup xAI announced a successful $6 billion Series B funding round, propelling Nvidia stock up by as much as 8% in the following trading day.
The excitement surrounding AI investments has continued to fuel optimism about Nvidia’s growth prospects, leading to a record-setting stock rally. Last week, Nvidia reported impressive first-quarter results, with adjusted earnings skyrocketing by 461% year over year and revenue growing by 262%.
In a strategic move, Musk revealed plans to utilize Nvidia chips for a new “supercomputer” that will power xAI’s chatbot named Grok, further solidifying the partnership between the two tech giants.
Nvidia also made headlines with the announcement of a 10-for-1 stock split and an increase in its cash dividend, mirroring similar moves by other tech industry leaders in recent quarters.
In an exclusive interview with Yahoo Finance, Nvidia CEO Jensen Huang dismissed concerns about a potential future demand slowdown, highlighting the strong and accelerating demand for generative AI training fueling the company’s data center growth in Q1.
The company reported record quarterly Data Center revenue of $22.6 billion, representing a remarkable 427% increase from the previous year. Data Center revenue accounted for 86% of Nvidia’s total revenue for the quarter, underscoring the company’s dominance in this pivotal segment.
As the financial landscape continues to evolve, stay tuned to Extreme Investor Network for the latest earnings reports, analysis, and company news. Be sure to follow us for the most up-to-date financial and business updates.