What's Going On With Nvidia Stock Wednesday?
Portfolio Pulse from Anusuya Lahiri
Nvidia Corp (NVDA) has gained over 215% YTD and over 50% last quarter, planning to triple the production of its H100 AI processor for 2024. Saudi Arabia, UAE, and Chinese tech companies, including Alibaba Group Holding (BABA), have ordered Nvidia AI chips in bulk. Wall Street estimates a second-quarter revenue of $11.22 billion and adjusted EPS of $2.09. At least 11 analysts boosted their price targets on the stock in August. However, concerns loom in the form of U.S. AI chip sanctions on China, leading to Huawei Technologies and Alibaba building their own AI chips.
August 23, 2023 | 4:39 pm
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Alibaba has ordered Nvidia AI chips in bulk, but U.S. AI chip sanctions on China could lead to Alibaba building its own AI chips.
Alibaba has ordered Nvidia AI chips in bulk, which could potentially boost its AI capabilities. However, U.S. AI chip sanctions on China could lead to Alibaba building its own AI chips, which could impact its reliance on Nvidia and potentially its stock price.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 70
POSITIVE IMPACT
Nvidia plans to triple AI processor production in 2024, boosting its stock. However, U.S. AI chip sanctions on China could lead to competition.
Nvidia's plan to triple AI processor production in 2024 and the increased demand for its chips have boosted its stock. However, U.S. AI chip sanctions on China could lead to competition from Huawei and Alibaba, which could potentially impact Nvidia's market share and stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100