Nvidia Stock Soars As Elon Musk Spotlights Latest AI Milestone

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.

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.

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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