HomeMarket NewsHow Elon Musk’s New Startup Sent Nvidia (NASDAQ:NVDA) Gaining Today

How Elon Musk’s New Startup Sent Nvidia (NASDAQ:NVDA) Gaining Today

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We all know that chip maker Nvidia (NASDAQ:NVDA) is a powerhouse right now, thanks largely to its connections to the artificial intelligence (AI) market. But apparently, Nvidia is such a powerhouse that it can gain on the strength of news from other companies, which it did today. The announcement in question came from Elon Musk‘s xAI, which noted just days ago that it concluded a Series B funding round, landing over $6 billion.

That move was sufficient to send Nvidia shares climbing in sympathy even three days later on what amounted to a halo effect. But a subsequent development gave Nvidia just a little extra boost as well, as Musk revealed that it would turn to Nvidia for the chips to build the xAI chatbot known as Grok.

Meanwhile, Nvidia’s basic line of business—selling the chips to power AI operations—is also still doing brisk business as more companies look for ready-made options to power data centers and drive AI development. Nvidia is ready to handle that demand and has been raking in the money accordingly.

Not The First Connection

The link between Nvidia and Musk is nothing new; just recently, we revealed that Jensen Huang had high praise for Musk, pointing out that Tesla (NASDAQ:TSLA) was far ahead of its competitors in the self-driving car market. This is absolutely true, but it likely doesn’t hurt that Tesla’s self-driving capabilities are built heavily around AI. That, in turn, will likely lead to another purchase order for Nvidia for the necessary chips to drive that AI.

Is Nvidia a Buy, Sell, or Hold?

Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 36 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 185.51% rally in its share price over the past year, the average NVDA price target of $1,185.29 per share implies 3.22% upside potential.

Screenshot 2024 05 29 at 12 57 02 Nvidia NVDA Stock Forecast Price Targets and Analysts Predictions TipRanks.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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