Elon Musk's xAI Plans $30–$40 Billion GPU Buy Near Memphis — Gene Munster Says Its A 'Good Day' To Be A Nvidia Salesperson - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)

On Tuesday, Deepwater Asset Management's managing partner, Gene Munster, noted that Elon Musk's AI enterprise xAI's plans for a massive investment could result in Nvidia Corporation NVDA as the biggest beneficiary.

What Happened: In a post on X, formerly Twitter, Munster highlighted Musk's revelation on CNBC that his AI company, xAI, plans to deploy 1 million GPUs near Memphis.

The majority of the 1 million GPUs expected to be deployed will come from Nvidia, with a smaller portion supplied by Advanced Micro Devices AMD, said Munster, adding that the estimated total cost of acquiring these chips could range between $30 billion and $40 billion.

“If it was done in CY26, it would account for about 15% of the current Street revenue estimate,” he stated, adding, “Good day to be an Nvidia salesperson.”

Why It's Important: Nvidia is scheduled to release its first-quarter earnings on May 28 after the market closes. Analysts, as per Benzinga Pro, expect the company to post earnings of 89 cents per share on revenue of $43.07 billion.

The stock currently holds a consensus price target of $172.32, based on ratings from 39 analysts. The highest target, $220, was issued by Rosenblatt on Feb. 24, 2025.