Nvidia’s market value continues to climb, making it the world’s most valuable company as it surpasses Microsoft. The semiconductor leader’s shares rose by 3% before the bell on Thursday, adding over $92 billion to its already impressive $3.34 trillion market capitalization. Partners Dell and Super Micro Computer received orders for servers from Elon Musk’s artificial intelligence startup, contributing to this growth.
Both Dell Technologies and Super Micro Computer also saw gains in their share prices, with increases of 3.8% and 4.8% respectively. These companies produce servers equipped with Nvidia chips, meeting the rising demand for processors powering most artificial intelligence applications. Musk announced via his X social media platform that Dell and Super Micro are providing server racks for xAI’s supercomputer, which will enhance the capabilities of its artificial intelligence tool, Grok.
Earlier this year, it was revealed that training the Grok 2 model required around 20,000 Nvidia H100 graphics processing units, with future models like Grok 3 necessitating up to 100,000 Nvidia H100 chips. Longbow Asset Management CEO, Jake Dollarhide, highlighted Nvidia’s profit-making focus on AI compared to Microsoft, which spends and earns on the technology.
Nvidia’s share price has surged nearly threefold this year, propelling gains in the broader market. Similarly, Super Micro and Dell have seen substantial increases in their share values, with gains of threefold and nearly 95% respectively. The Philadelphia SE Semiconductor Index has also seen an almost 34% rise since hitting a recent low in April, closing at a record high on Tuesday.
Investors and analysts are closely monitoring Nvidia’s performance, especially its advancements in AI technology. As the company continues to lead in the semiconductor industry and drive innovation in artificial intelligence, its market value and share prices reflect the growing demand for its products. With its strategic partnerships and cutting-edge developments, Nvidia shows no signs of slowing down as it cements its position as the top player in the global tech market.
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