Nvidia Investors Need A Reality Check, Focus On Risks Facing Global Chip Industry: FT
Portfolio Pulse from Benzinga Neuro
Despite Nvidia's share price tripling this year, the company faces risks due to the capital-intensive nature of chip production and limited output. Asian chipmakers, who manufacture all of Nvidia’s chips, have reported their lowest earnings in years. The production of high-end chips is capped due to the high cost of building a chip fabrication facility and the need for continual upgrades. Furthermore, AI chips, which are expected to drive unprecedented demand, will only make up a small part of the total sales for chip manufacturers.
July 26, 2023 | 4:17 am
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Nvidia faces risks due to the capital-intensive nature of chip production and limited output. This could impact the company's future earnings and share price.
The article highlights the risks Nvidia faces due to the capital-intensive nature of chip production and limited output. This could impact the company's future earnings and share price. Furthermore, the article mentions that AI chips, which are expected to drive unprecedented demand, will only make up a small part of the total sales for chip manufacturers. This could limit Nvidia's potential growth in the AI chip market.
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IMPORTANCE 80
RELEVANCE 100