From Yahoo Finance: 2025-05-23 12:42:00

NVIDIA (NVDA) gets a boost as Elon Musk plans to build a 1 million GPU facility near Memphis and buy more chips from the company. This comes as Nvidia faces challenges in China due to export controls. Analysts at Morgan Stanley maintain an Overweight rating on NVDA with a $160 price target.

Musk’s xAI company has only installed 200,000 GPUs at the Memphis facility, leaving room for an additional 800,000 GPUs from Nvidia and other suppliers. Plans for a second location with one million Nvidia Blackwell GPUs are also confirmed, expected to be completed in the next six to nine months.

Morgan Stanley analysts are impressed with Nvidia’s RTX PRO servers for enterprise AI inference, featuring Blackwell Pro Graphics 6000 cards and networking technologies. These servers are set to support an AI enterprise platform, contributing to Nvidia’s growth potential in the AI market.

Read more: Elon Musk to Nvidia Rescue With Massive GPU Orders