Shares of Nvidia (NVDA) are trading higher on Tuesday following an announcement from Elon Musk regarding his AI startup, xAI, revealing that the company is in the process of building a supercomputer to be powered by Nvidia's chip technology. The supercomputer will boost operations at the startup.
Yahoo Finance's Julie Hyman and Josh Lipton break down the details.
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
This post was written by Angel Smith
Video Transcript
Welcome back.
You're watching The morning brief brought to you by Invest Go.
Let's get to some trending tickers that we're watching this morning and video shares are moving lower or moving higher.
Excuse me by 3%.
This morning, after test the CEO, Elon Musk told investors that his A I start up will be working on building a supercomputer that will power the next version of its A i chatbot Now.
Reportedly, the supercomputer would be powered by NVIDIA's A I chips.
You're taking a look at shares of NVIDIA higher by about 3.2%.
Pre market.
Here, this would be a huge deal is just another massive order for NVIDIA.
But at the same time, it's also a massive deal for Xa I $6 billion in in a raise.
There it is.
And it kind of goes around the excitement surrounding a I.
Why so many people on the street when it comes to strategists when it comes to analysts here covering, uh, the technology sector and specifically some of these chip names very closely saying that this a I rally still has room to run.
When you talk about that growth, talk about the appetite, the investment plans that we're hearing from CEO S from executives across the borders, in terms of where they are prioritising their investments.
A lot of that having to do with a I.
But when it comes to this story specifically, right now, we know that Xa I has partnered with Oracle for access to data centres and competing chips.
Now, Oracle just recently had signed a new, uh cloud computing infrastructure deal with NVIDIA, saying that it plans to boost capital spending in the next school year.
So when you take into account some of the gains that we've seen in those chip makers a MD intel all moving to the upside here So again, that excitement surrounding NVIDIA surrounding the leaders within that space spilling over now to some of those other large players such, uh, uh, story that we have been talking about now for quite some time.
But when it comes to some of those competitors, I guess not so much closing in on NVIDIA but also able to participate and capture some of that capital expenditures that we are seeing from larger corporations in terms of their A I investment plans.
We are seeing them.
Some of these other players that you see on your screen, their intel micro on Qualcomm becoming a bigger part of this A. I story.
We are seeing the excitement play out within those stocks, and as a result, you're seeing gains almost across the board for a lot of these larger cap chip names.
Maybe Why, uh, Jensen Wang was so positive in the commentary about Tesla or and Elon Musk while they were talking about earnings last week, that would make a lot of sense.
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