stock rose Wednesday morning after
CEO Elon Musk said there would be continued demand for the chip maker’s hardware to power artificial-intelligence systems.
shares were up 1.3% at $835.00 in recent trading. The stock closed up 3.7% on Tuesday.
Musk said on Tuesday that the electric-vehicle maker could need 85,000 Nvidia H100 graphics-processing units by the end of this year, up from 35,000 currently.
It’s good news for Nvidia that companies still want the H100 chip as they compete to improve their AI capabilities. There were fears companies might pause orders of that chip waiting for the release of the chip maker’s new Blackwell range. Morgan Stanley analyst Joe Moore has recently argued that Tesla could become the largest customer for Nvidia’s AI chips, as the EV maker progresses its self-driving and robotaxi technology.
It’s also a particular endorsement of Nvidia’s hardware over rivals, considering Musk has previously said
would also order chips from
AMD stock was up 2.8% and
was gaining 2.1% in early trading Wednesday.
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Nvidia will be hoping for further good news this week as other major technology companies give updates. These include
which is due to report its results on Wednesday, followed by
and Google-parent
on Thursday.
Meta CEO Mark Zuckerberg has previously said the company will have 350,000 Nvidia H100 graphics processing units and overall almost 600,000 H100 compute equivalent GPUs by the end of this year.
Meanwhile, Nvidia said Wednesday it had agreed to acquire to acquire Run:ai, an Israeli start-up that provides an AI infrastructure orchestration and management platform.
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“Run:ai enables enterprise customers to manage and optimize their compute infrastructure, whether on premises, in the cloud or in hybrid environments,” the companies said in a joint statement.
Israel-based newspaper Calcalist reported the acquisition price was around $700 million. Nvidia declined to comment on the terms of the deal.
Nvidia shares have risen 66% this year to date through to Tuesday’s close. That compares with a 6.3% rise in the
index and a 4.6% rise in the
over the same period.
Write to Adam Clark at adam.clark@barrons.com
