Nvidia soared yet again on Tuesday after Tesla CEO Elon Musk indicated the AI chip leader would be a supplier for his AI startup xAI. Musk's startup raised $6 billion in the latest round of funding over the weekend and plans to build a supercomputer to support its AI chatbot. A lower price would make Nvidia a candidate for the Dow 30, which is a price-weighted index.
Seasoned Wall Street investor Ed Yardeni, founder and CEO of Yardeni Research, has boldly rebranded the Magnificent Seven giants as the “Magnificent One,” referring only to Nvidia Corp. (NASDAQ:NVDA) as the key driver of this year’s market gains. Yardeni noted that the semiconductor giant has rallied by 115% year-to-date, more than three times as much as Meta Platforms Inc. (NASDAQ:META) – the top performer among the “Magnificent Six” – and more than 10 times as much as the broader S&P 500 index
The Nasdaq led the major indexes to start the holiday-shortened week. Nvidia stock kept its post-earnings rally going and reached a new high on Tuesday.