Nvidia’s recent GPU endorsement did not stop shares from falling 0.3% in premarket trading on Thursday, following a 5.8% jump above $200 on Wednesday. Investors are now looking for proof that the partnership behind the rally will have a lasting effect on the stock.
SpaceX and Anthropic partnered to give the AI company access to more than 300 megawatts of computing power using 220,000 Nvidia chips at SpaceX’s Colossus 1 data center in Tennessee. This deal shows that, even with interest in Intel and AMD CPUs, Nvidia’s GPUs are still the top pick for advanced AI work.
Elon Musk supported this view on social media, calling Nvidia’s latest GPU the best AI computer. This is a strong endorsement, considering SpaceX’s role in AI infrastructure and Musk’s influence in the industry.
Nvidia’s early Thursday drop after Wednesday’s gains reflects a recent trend: quick rallies followed by settling near important price points. With earnings coming up on May 20, investors may wait for results to see if partnerships alone can keep the stock above $200.
