What's Going On With Nvidia Stock Tuesday?
Portfolio Pulse from Anusuya Lahiri
Nvidia Corp (NVDA) is outperforming peers AMD and INTC, with expected FY23 revenue of $58.86 billion, a 118% increase year-on-year. However, production delays at key suppliers TSMC (TSM) and Samsung (SSNLF) in their Arizona and Texas plants may impact Nvidia. These plants may be delayed until after the 2024 U.S. presidential election. Additionally, a U.S. Department of Commerce survey in 2024 on legacy chip sourcing could pose risks for Nvidia's China market. Chinese companies are also developing AI products to circumvent U.S. technology embargoes. NVDA stock has gained over 241% year-to-date, outpacing gains by AMD, INTC, SPY, and QQQ.
December 26, 2023 | 2:04 pm
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NEUTRAL IMPACT
AMD, as a competitor to Nvidia, may be indirectly affected by Nvidia's performance and the overall market conditions highlighted in the article.
AMD's stock may experience indirect effects from Nvidia's performance and market conditions, but the direct impact is less clear.
CONFIDENCE 65
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Intel, another Nvidia competitor, may also be indirectly impacted by Nvidia's growth and the semiconductor industry's challenges.
Intel's stock might be indirectly influenced by Nvidia's reported growth and the broader challenges within the semiconductor industry.
CONFIDENCE 65
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Nvidia is expected to see significant revenue growth, but may face challenges due to supplier delays and U.S. regulatory scrutiny on chip sourcing, particularly in China.
While Nvidia's revenue growth is strong, the potential impact of supplier delays and regulatory issues could create uncertainty, leading to a neutral short-term impact on the stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Invesco QQQ Trust, which tracks the NASDAQ-100, may be affected by the performance of tech stocks like Nvidia.
QQQ's valuation is influenced by the tech sector, where Nvidia is a key player, but the impact of Nvidia-specific news is more muted across the broader ETF.
CONFIDENCE 60
IMPORTANCE 20
RELEVANCE 30
NEUTRAL IMPACT
The SPDR S&P 500 ETF, which includes semiconductor stocks like Nvidia, may reflect the sector's performance in its valuation.
As an ETF that tracks the broader market, SPY's performance is influenced by various sectors, including semiconductors, but the direct impact from Nvidia's news is diluted.
CONFIDENCE 60
IMPORTANCE 20
RELEVANCE 30
NEGATIVE IMPACT
Samsung's Texas fab production postponement may negatively impact its operations and client relations, potentially affecting its stock.
Delays in production can lead to negative consequences for Samsung's business and its relationship with clients, which may reflect poorly on its stock.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
TSMC faces production delays at its Arizona plant, which may affect its clients like Nvidia and could impact TSM's stock in the short term.
Production delays are generally seen as negative for manufacturers like TSMC, as they can lead to revenue losses and client dissatisfaction.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70