Nvidia’s AI Supercomputer Demand Drives Stock Price to New High, Outpacing Microsoft

On Thursday, Nvidia’s shares rose 3%, solidifying its position as the world’s most valuable company. The increase followed news that partners Dell and Super Micro Computer had received server orders for Elon Musk’s AI startup, xAI. As a result, Nvidia was expected to add more than $92 billion to its market value of $3.34 trillion, leading at $139.35, compared to Microsoft’s $3.32 trillion market cap. Dell Technologies and Super Micro Computer saw gains of 3.8% and 4.8%, respectively. These companies manufacture servers with Nvidia chips, enabling them to meet the growing demand for processors that power AI applications.

Elon Musk shared on his X social media platform that Dell and Super Micro would be supplying server racks for xAI’s supercomputer. This supercomputer will be used to enhance the capabilities of his AI tool, Grok. Musk mentioned earlier this year that training the Grok 2 model required about 20,000 Nvidia H100 graphic processing units, and future models like Grok 3 would need up to 100,000 Nvidia H100 chips.

Nvidia’s high stock price growth, nearly tripling this year, has driven gains in the general market. Similarly, Super Micro Computer shares have more than tripled, and Dell’s stock has increased by almost 95% during the same period. The Philadelphia SE Semiconductor Index has soared by nearly 34% since the most recent low in April, hitting a record high on Tuesday.

These trends underscore the growing importance and value of companies involved in AI and semiconductor technology.

Analysts at Longbow Asset Management noted that while Microsoft is involved in both spending and making money in AI, Nvidia focuses solely on making substantial profits in AI.