Elon Musk's xAl is purchasing $25-40 billion worth of Nvidia chips, potentially boosting stock

From Nasdaq: 2025-05-16 17:00:00

Nvidia dominates the GPU market with over 90% share, thanks to cloud giants like Microsoft, Alphabet, Amazon, and Meta Platforms as major customers. xAI, Elon Musk’s start-up, is using Nvidia GPUs to build its Grok language model, with plans to scale up to 1 million chips costing $25-40 billion.

Despite competition and concerns, Nvidia’s revenue and earnings forecasts remain positive. With xAI’s potential billions in GPU purchases, Nvidia maintains pricing power. Now trading at a low P/E multiple, analysts see growth ahead for the chipmaker, making it a potential long-term investment opportunity.



Read more at Nasdaq: Did Elon Musk Just Give Nvidia Investors 40 Billion Reasons to Cheer?