AMD, Nvidia Shares Jump After Musk Highlights xAI's GPU Needs: 'We Expect To Still Buy A Lot'

Shares of Advanced Micro Devices Inc AMD and NVIDIA Corp NVDA are moving higher in Tuesday’s after-hours session after Tesla Inc TSLA CEO Elon Musk announced that the company expects to purchase “a lot” of GPUs from the chip companies.

What Happened: In an interview aired on CNBC’s “Closing Bell: Overtime,” Musk laid out a vision for the future that includes millions of fully autonomous robotaxi vehicles and Optimus bots. When asked how many GPUs the company will need to make that vision a reality, Musk said “quite a few.”

“We expect to still buy a lot of GPUs from Nvidia, some from AMD, and maybe from others,” Musk said. “As long as Nvidia is better than what we make, we’ll keep buying from Nvidia.”

Musk told CNBC that his vision is less than five years away. He also noted that his AI company xAI plans to continue buying GPUs from Nvidia. He highlighted the AI company’s training cluster, which he believes is the most powerful in the world right now, with over 200,000 GPUs at its facility in Memphis.

Musk also told CNBC that xAI is in the process of building a second location that will feature one million Nvidia Blackwell GPUs, expected to be completed in the next six to nine months.

“It will be the first gigawatt-class training cluster in the world,” he said.

In after-hours at the time of publication on Tuesday, AMD shares were up 0.77% at $114.38 and Nvidia shares were narrowly higher, up 0.11% at $134.52 at last check, according to Benzinga Pro.

Photo: courtesy of Nvidia.