NVIDIA stock surges 7% after Elon Musk's xAI becomes customer, highlighting dominance in AI hardware.

From NASDAQ: 2024-05-29 09:19:00

NVIDIA stock surged 7% after reports of Elon Musk’s AI venture, xAI, becoming a customer. This highlights NVIDIA’s dominance in the AI hardware market and the increasing demand for its GPUs. With a market cap of $2.8 trillion, NVIDIA’s stock has seen a 130% YTD surge, outperforming the industry.

xAI raised $6 billion in Series B funding, valuing the startup at $24 billion. They plan to use this to accelerate R&D and launch their chatbot, Grok. The startup will heavily rely on NVIDIA’s GPUs for their large language models. xAI aims to have a supercomputer powered by NVIDIA H100 GPUs by 2025.

The generative AI market is booming, with potential applications in various industries. NVIDIA’s high-powered chips are in demand for generative AI and other sectors like healthcare and automotive. The global generative AI market is projected to reach $967.6 billion by 2032, driving NVIDIA’s revenue growth and stock performance.

NVIDIA, Oracle, and Apple have Zacks Rank ratings, with NVIDIA and Oracle ranked #2 (Buy) and Apple at #3 (Hold). Palo Alto Networks is another top-ranked stock worth considering. The global AI market’s growth projections and the demand for NVIDIA’s chips point towards significant revenue growth in the coming quarters.

Palo Alto Networks’ earnings estimate for fiscal 2024 suggests a 23.9% YoY growth. The stock has gained 4.5% YTD. Zacks experts have identified 5 stocks with the potential to double in 2024. Previous picks have seen significant gains, offering opportunities for investors to capitalize on emerging trends in the tech sector.



Read more at NASDAQ: NVIDIA (NVDA) Surges on Reports of Adding Elon Musk as Customer