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AI Investments Boost Stock
Nvidia tops $2.8 trillion valuation
Nvidia's (NVDA) shares surpassed the $1,100 mark for the first time, ending the Wednesday trading session above $1,140.
This surge in stock value occurred after Elon Musk's AI company, xAI, announced on Sunday that it had raised $6 billion in a Series B financing, propelling Nvidia’s stock to increase by up to 8% the following day.
Musk intends to employ Nvidia chips in a new "supercomputer", designed to support xAI's chatbot, Grok.
This ongoing surge in AI investment fuels optimism about Nvidia's growth prospects as the chipmaker maintains its streak of record-breaking stock performance.
Last week, Nvidia reported Q1 2015 earnings that surpassed expectations, with year-over-year adjusted earnings skyrocketing by 461% and revenue soaring 262%.
Source: Yahoo Finance
Alongside impressive earnings, Nvidia also declared a 10-for-1 stock split, effective for shareholders recorded as of June 7, to take place on June 10. Additionally, the company raised its quarterly dividend to $0.10 per share, an increase from $0.04.
Nvidia’s market cap swelled to over $2.8 trillion; it was under $2.3 trillion just last week before the earnings announcement. That $500 million jump is more than the combined valuation of its rivals Intel and AMD.
The stock is up over 30% in the last month and +130% year-to-date[1]!
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