The price of Nvidia (NVDA) shares reached a record high on Tuesday as it passed $1,100 for the first time. At the end of the trading day, it had reached more than $1,140.
Nvidia Reaches Record-High Share Price
This record-breaking move came following the chipmaker’s impressive Q1 results. Adjusted earnings shot up by 461% on a year-on-year basis and the company’s revenue climbed by 262%. A 10-for-1 share split was announced, while the NVDA cash dividend was also increased.
CEO Jensen Huang confirmed that he expects the demand for generative AI training to remain strong and accelerate. Huang pointed out that companies are looking to use their data centres and GPUs right away to start saving money. The NVDA Data Centre revenue reached a new quarterly record of $22.bn, which is an increase of 427% from the same time last year and makes up 86% of the firm’s total quarterly revenue.
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The share price was also helped by continuing excitement in the market over AI. One of the latest moves came on Sunday, when Elon Musk’s xAI startup was reported to have raised $6bn in its Series B funding round. This news helped to boost NVDA shares, as it’s believed that xAI will use Nvidia’s chips to power a supercomputer that will drive an AI chatbot known as Grok.
The xAI news was confirmed in a blog post that stated:
xAI will continue on this steep trajectory of progress over the coming months, with multiple exciting technology updates and products soon to be announced.
