- Elon Musk’s latest venture, xAI, has significantly impacted Nvidia’s stock price.
- Nvidia’s stock price surged by nearly 7% following the announcement.
- Elon Musk’s xAI plans to acquire up to 100,000 Nvidia AI chips for a new supercomputer.
Discover how Elon Musk’s xAI acquisition of Nvidia AI chips is driving NVDA stock to new heights. Stay updated with the latest developments in the crypto and tech world.
Elon Musk’s xAI Fuels Nvidia’s Stock Surge
Nvidia’s stock price reached an all-time high, surpassing $1,130, marking a nearly 7% increase from the previous day’s closing price. This surge was primarily driven by the announcement that Elon Musk’s company, xAI, will be acquiring Nvidia AI chips for a new supercomputer project. The news has generated significant bullish sentiment among investors, propelling NVDA’s price upward by approximately 34% since early May.
Details of the xAI Supercomputer Project
During an investor presentation, Elon Musk revealed that xAI will require up to 100,000 specialized semiconductors to train and launch the next version of its AI chatbot, Grok. The supercomputer, which Musk has termed a “gigafactory of computation,” will utilize Nvidia H100 graphics processors and is expected to be operational by autumn 2025. This ambitious project has further solidified Nvidia’s position as a leader in the AI and semiconductor industry.
Technical Analysis of Nvidia’s Stock Price
Analyzing the 4-hour NVDA stock chart, it is evident that the price is nearing the median line of the ascending channel, which may act as resistance. The Relative Strength Index (RSI) is at its highest level in a year, indicating that the market might be significantly overbought and susceptible to a pullback. Additionally, the upcoming 1:10 stock split on June 10 could influence the stock’s performance. While the split may make Nvidia shares more accessible to a broader range of investors, there is a possibility of a “buy the rumor, sell the news” phenomenon, potentially leading to a price correction.
Conclusion
Elon Musk’s xAI acquisition of Nvidia AI chips has driven NVDA stock to new heights, reflecting the growing importance of AI and advanced computing in today’s market. Investors should remain cautious, considering the potential for a pullback due to overbought conditions and the upcoming stock split. Nonetheless, Nvidia’s strategic positioning and innovative projects continue to make it a formidable player in the tech industry.
