Nvidia (NASDAQ:NVDA) stock is rising again on news that it may receive more orders from a new customer later this year. Last week, The Information reported that Elon Musk planned on using Nvidia chips to power his new venture, xAI. However, this morning brought an update on the executive’s artificial intelligence (AI) plans. Specifically, the Tesla (NASDAQ:TSLA) CEO estimates that the electric vehicle (EV) firm will spend between $3 and $4 billion on chips from Nvidia in 2024.
This news is helping send NVDA stock up. Meanwhile, Tesla stock has been highly volatile, with shares in the red as of this writing. This may be due to some confusion that stemmed from coverage of the story earlier today.
Will both TSLA and NVDA stock grow further this year on Elon Musk’s chip order news? Here’s what investors can expect in the coming months.
What’s Happening With NVDA Stock?
Things are going better for NVDA stock now, but shares battled some high volatility earlier today. Part of that can likely be attributed to news breaking about Musk sending a large shipment of Nvidia chips to xAI before Tesla. While that didn’t ultimately pose much of a threat to Nvidia, it did call Tesla’s growth prospects into questions.
Musk took to X (formerly Twitter) to clarify his actions regarding the chip shipment:
Granted, this isn’t a commitment from Musk to spend this much money on Nvidia chips. But the CEO did publicly clarify that he intends to keep buying products from the AI leader in an attempt to power his own operations. That could certainly boost both NVDA stock as well as Tesla in the coming months.
Musk is known for his unpredictable behavior. Still, he has made it clear that he plans on using AI to take both Tesla and his other firms into their next stages of growth.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
