Why Nvidia Stock Is Losing Steam Premarket Today
Portfolio Pulse from Shanthi Rexaline
Nvidia Corp. (NASDAQ:NVDA) shares are falling in premarket trading due to a report that Microsoft Corp. (NASDAQ:MSFT), a major customer for Nvidia’s AI chip, will launch its own in-house AI chip next month. The report suggests that Microsoft has been working on this chip for years. Nvidia's stock could also be reacting to the Israel-Hamas conflict that is affecting growth stocks.
October 09, 2023 | 11:38 am
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NEUTRAL IMPACT
Microsoft's plans to launch its own AI chip could reduce its reliance on Nvidia's chips.
Microsoft's move to develop its own AI chip could reduce its reliance on Nvidia's chips. However, it's unclear how this will affect Microsoft's stock in the short term.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
Nvidia's stock is falling due to Microsoft's plans to launch its own AI chip, which could reduce demand for Nvidia's chips. The Israel-Hamas conflict may also be affecting the stock.
Microsoft's move to develop its own AI chip could reduce its reliance on Nvidia's chips, potentially leading to a decrease in sales for Nvidia. The ongoing Israel-Hamas conflict is also causing uncertainty in the market, which could be affecting Nvidia's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100