Nvidia Stock Is Trading Lower Tuesday: What's Going On?
Portfolio Pulse from Adam Eckert
Nvidia Corp (NASDAQ:NVDA) shares are trading lower due to reports of Alphabet Inc (NASDAQ:GOOG) developing its own AI chips, named Axion, to reduce reliance on external vendors like Nvidia. This development, alongside anticipation of the March CPI report indicating potential inflation increase, has contributed to the downward movement of Nvidia's stock. Alphabet's Axion chips are expected to enhance performance by up to 30% and become available to external customers later this year.
April 09, 2024 | 7:21 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Alphabet Inc is developing its own AI chips, Axion, aiming to reduce costs and reliance on vendors like Nvidia, potentially improving performance by up to 30%.
Alphabet's development of Axion AI chips represents a strategic move to become more self-reliant and cost-efficient in AI development. This could enhance Alphabet's competitive edge in AI and big data analysis, positively impacting its stock in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
Nvidia's stock is trading lower due to Alphabet's plans to develop in-house AI chips, potentially reducing demand for Nvidia's products, and concerns over inflation data.
Nvidia's stock decline is directly linked to Alphabet's move to create its own AI chips, which could decrease Nvidia's market share in AI chip production. Additionally, the anticipation of the CPI report and its implications for inflation and interest rates contribute to the negative sentiment.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90