Nvidia Stock Soars As Elon Musk Spotlights Latest AI Milestone

Kritika Mehta
Updated
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Nvidia Stock Soars As Elon Musk Spotlights Latest AI Milestone

Highlights

  • xAI launched the Memphis Supercluster training center today.
  • Elon Musk lauded Nvidia for the support extended toward this milestone.
  • The Nvidia stock gained over 2% in the pre-market session today after this announcement.

On Monday, July 22, Nvidia’s stock saw a significant boost in the pre-market trading session. This rebound comes in the wake of a sharp decline last week, where the stock plummeted over 10%. The turnaround was driven by a notable endorsement from Elon Musk, who highlighted a major achievement involving Nvidia’s technology.

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Elon Musk Spotlights Memphis Supercluster AI Center

In a post on X, Elon Musk celebrated the initiation of training for xAI’s Memphis Supercluster. “Nice work by xAI team, X team, Nvidia & supporting companies getting Memphis Supercluster training started at ~4:20am local time,” Musk wrote. He further noted, “With 100k liquid-cooled H100s on a single RDMA fabric, it’s the most powerful AI training cluster in the world!”

The Memphis Supercluster, a massive computing facility equipped with 100,000 of Nvidia’s H100 GPUs, is set to train the next version of xAI’s chatbot, Grok. Moreover, these GPUs are designed for training artificial intelligence models. The process demands immense energy and computing power.

Earlier, in June, the Greater Memphis Chamber confirmed the development of xAI’s computing facility. The facility has been dubbed the “Gigafactory of Compute.” Moreover, the organization revealed that the facility would repurpose a former manufacturing site and emphasized the economic benefits for the area.

In addition, xAI, backed by $6 billion in funding, has already begun hiring for the site. They have listed positions such as fiber foreman, network engineer, and project manager. While the economic prospects are promising, the project has also faced scrutiny from local environmental groups.

The Memphis Community Against Pollution group, along with others, has raised concerns about the facility’s substantial energy and water consumption. “xAI is also expected to need at least one million gallons of water per day for its cooling towers,” the groups noted in a letter. Hence, they urged xAI to invest in a wastewater reuse system to mitigate the impact on Memphis’s water supply.

Also Read: Elon Musk Arrives In Tennessee, Are Bitcoin Conference Rumors True?

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Nvidia Stock Surge

In the pre-market session today, the Nvidia stock rose by 2.26% to $120.58 in the pre-market session. Furthermore, the surge in Nvidia‘s stock aligns with a broader positive trend in the market. FactSet data shows that from August 2020 to July 2024, the NVDA stock has grown by 956%.

However, it lags behind MicroStrategy’s impressive 1339% surge during the same period. Meanwhile, other major tech stocks, including Elon Musk’s Tesla (153%), Google (140%), and Microsoft (110%), have also seen substantial gains. Whilst, Amazon stock has experienced a more slight increase of 16%.

In recent weeks, MicroStrategy’s stock has particularly stood out, rising by 15% on Monday to close at $1,611. This surge was driven by a significant rally in Bitcoin’s price to $65,000. On the flip side, Nvidia stock plummeted to $117.93, dropping 9.67% in the past week.

Also Read: MicroStrategy Or Nvidia? MSTR Stock Outperforms World’s Largest Chip Manufacturer

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.