By Adam Clark
Nvidia stock was rising early on Wednesday after Tesla CEO Elon Musk said there would be continued demand for the chip maker's hardware to power artificial-intelligence systems.
Nvidia shares were up 1.7% at $837.80 in premarket 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.
It's also a particular endorsement of Nvidia's hardware over rivals, considering Musk has previously said Tesla would also order chips from Advanced Micro Devices. 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.
AMD was up 1.3% and Intel was gaining 0.7% in premarket trading on Wednesday.
Nvidia will be hoping for further good news this week as other major technology companies give updates. These include Meta Platforms which is due to report its results on Wednesday, followed by Microsoft and Google-parent Alphabet on Thursday.
Nvidia shares have risen 66% this year to date through to Tuesday's close. That compares with a 6.3% rise in the S&P 500 index and a 4.6% rise in the Nasdaq Composite Index over the same period.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
April 24, 2024 07:12 ET (11:12 GMT)
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