What's Going On With Nvidia Stock Tuesday
Portfolio Pulse from Anusuya Lahiri
Nvidia Corp (NVDA) is benefiting from the artificial intelligence boom, with Snowflake Inc (SNOW) using Nvidia's technology for AI applications and a strong demand for Nvidia GPUs in China. However, Tesla Inc (TSLA) is planning to reduce its reliance on Nvidia by developing its own AI chips. Despite the positive outlook, a finance professor at NYU values Nvidia's shares at $240, well below the current price of $415.08.
June 27, 2023 | 5:26 pm
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POSITIVE IMPACT
Snowflake is using Nvidia's technology for AI applications.
Snowflake's use of Nvidia's technology for AI applications could potentially boost its capabilities and competitiveness in the AI space, which could have a positive impact on its stock.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Tesla is planning to reduce its reliance on Nvidia by developing its own AI chips.
Tesla's plan to develop its own AI chips could reduce its reliance on Nvidia, potentially leading to cost savings and increased self-sufficiency, which could have a positive impact on its stock.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Nvidia outsources chip production to Taiwan Semiconductor Manufacturing Company.
Nvidia's outsourcing of chip production to Taiwan Semiconductor could potentially boost the latter's revenues, which could have a positive impact on its stock.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Nvidia is benefiting from the AI boom and strong demand in China, but faces potential loss of business from Tesla. Its shares are considered overvalued by a finance professor.
Nvidia is benefiting from the AI boom and strong demand in China, which could boost its revenues. However, Tesla's plan to develop its own AI chips could reduce its reliance on Nvidia, potentially leading to a loss of business. Furthermore, a finance professor's valuation of Nvidia's shares at $240, well below the current price, suggests that the stock may be overvalued.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100