Nvidia (NVDA) stock traded above $1,100 for the first time ever on Tuesday, a move that allowed shares to surpass their previous record closing high. Shares finished the day above $1,140.
The milestone moment comes after Elon Musk’s artificial intelligence startup xAI said Sunday that it raised $6 billion in a Series B funding round, sending Nvidia stock up as much as 8% the following trading day.
The flurry of AI investment has continued to boost optimism over Nvidia’s growth rate as the chipmaker continues its record-setting stock rally. Last week, Nvidia reported first quarter results that more than impressed Wall Street with adjusted earnings surging 461% year over year while revenue grew by 262%.
According to the Information, Musk plans to use Nvidia chips for a new “supercomputer” that will be used to power xAI’s chatbot named Grok.
“xAI will continue on this steep trajectory of progress over the coming months, with multiple exciting technology updates and products soon to be announced,” Sunday’s blog post read.
