Graphics card and AI chipmaker, Nvidia, has cemented its status as the world’s most valuable company, with its shares surging by 2.5% on Thursday, setting another record, following Tesla CEO, Elon Musk, ordering servers from Nvidia’s partners, Dell Technologies and Super Micro Computer, for his AI startup, xAI.
Nvidia’s market capitalisation surpassed that of Microsoft on Tuesday, and is set to add nearly $84 billion to its last close market value of $3.34 trillion, reaching a new level of $138.99 per share. In contrast, Microsoft had a market value of $3.32 trillion as of its last close, with shares down 1% at $442 in early trade.
Dell Technologies and Super Micro Computer saw their shares increase by 4% and 4.5%, respectively. These companies manufacture servers equipped with Nvidia chips, capitalising on the surging demand for processors essential for AI applications.
On Wednesday, Musk announced on his social media platform, X, that Dell and Super Micro are supplying server racks for xAI’s supercomputer. This infrastructure will expand the capabilities of its AI tool, Grok. Musk previously stated that training the Grok 2 model required about 20,000 Nvidia H100 graphic processing units, and future models like Grok 3 will need up to 100,000 Nvidia H100 chips.
Nvidia’s stock price has nearly tripled this year, driving gains in the broader market. Super Micro shares have more than tripled in value during the same period, while Dell’s stock is up nearly 95%. The Philadelphia SE Semiconductor Index has risen nearly 34% since its most recent low in April, closing at a lifetime high on Tuesday.
