Nvidia Stock Gets Boost as Musk Reveals xAI's Aggressive Chip Buildout Plans

Nvidia's stock price saw a boost of 0.7% in premarket trading on Friday, reaching $226.24, following an update from Elon Musk about his xAI business's chip buildout plans.

Musk revealed that the Memphis 'Colossus' data center already houses around 780,000 Nvidia AI chips, spanning both the Hopper and Blackwell generations.

An additional 220,000 of Nvidia's newer GB300 Blackwell chips are expected to be running next week, with another 220,000 in October. Musk also mentioned that if everything goes according to plan, yet another 220k GB300 chips could be online by late December.

This rapid buildout pace is a positive sign for Nvidia, as the company needs data centers to get built quickly so its chips don't pile up unused in warehouses. The speed of this project also contrasts with Oracle's 'Project Jupiter' data center campus in New Mexico, which has reportedly faced delays and contractual issues.