Nvidia, whose market capitalization overtook Microsoft on Tuesday, was set to add about $84 billion to its last close market value of $3.34 trillion at its current level of $138.99.
Microsoft’s market value was $3.32 trillion. Its shares were down 1% at $442 in early trading.
Dell Technologies and Super Micro Computer rose 4% and 4.5%, respectively.
Companies build servers equipped with Nvidia chips, enabling them to capitalize on the growing demand for processors that power virtually all AI applications.
Musk said on his X social media platform on Wednesday that Dell and Super Micro are supplying server racks for xAI’s supercomputer, which will be used to expand the capabilities of its AI tool, Grok.
He said earlier this year that it took about 20,000 Nvidia H100 graphic processing units to train the Grok 2 model, and that the Grok 3 model and beyond would require 100,000 Nvidia H100 chips.
“While Microsoft both spends and makes money in AI, Nvidia only makes money and lots of money and profits in AI. That’s why you can’t spell Nvidia without AI,” said Jack Dollarhyde, chief executive officer of Longbow Asset Management. was
Nvidia’s share price has nearly tripled so far this year, powering gains in the broader market. Over the same period, Super Micro shares have more than tripled in value, while Dell shares have gained nearly 95%.
The Philadelphia SE Semiconductor Index has rallied nearly 34% from its most recent low in April and closed at a lifetime high on Tuesday.
“This will be a tech market in which the strong get stronger as AI technologies help the big tech stalwarts monetize their huge installed base across the enterprise (Microsoft, Oracle, Dell, Amazon, etc.) and consumer landscape (Meta, Apple, Google). does. in the coming years,” said Wedbush Securities analyst Dan Ives.
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