What's Going On With Nvidia and AMD Stocks On Monday?
Portfolio Pulse from Anusuya Lahiri
Nvidia and AMD stocks rebounded on Monday after a significant selloff on Friday, with Nvidia losing over $200 billion in market value and AMD nearly 6% in stock value. The selloff was influenced by concerns over U.S. Federal Reserve rate cuts amid tensions between Iran and Israel. Analysts highlight strong demand for AI-related capacity and tools, with Nvidia and AMD benefiting from cloud service provider expenditures. Nvidia's stock price drop significantly impacted the S&P 500. Key cloud service providers like Google Cloud, Microsoft Azure, and Amazon Web Services continue to support Nvidia and AMD GPU-powered solutions. Analyst Rick Schafer predicts strong demand for Nvidia's GPUs and a bullish outlook for the data center AI market.
April 22, 2024 | 2:16 pm
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POSITIVE IMPACT
AMD sees a modest rebound after a 6% loss in stock value, benefiting from the same AI and cloud service trends as Nvidia.
AMD's recovery, though more modest than Nvidia's, is driven by its involvement in the AI and cloud computing sectors. The company's performance is closely tied to the broader trends benefiting Nvidia, indicating a positive outlook.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Amazon Web Services' (AWS) utilization of Nvidia and AMD GPUs for cloud services reinforces its leadership in the cloud computing market.
Amazon's AWS leveraging Nvidia and AMD GPUs for cloud services underlines its dominant position in the cloud computing sector, which is likely to have a positive impact on its stock in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Alphabet's Google Cloud, as a key CSP, continues to support Nvidia and AMD GPU-powered solutions, indicating a positive outlook for Alphabet.
Alphabet's involvement through Google Cloud in providing Nvidia and AMD GPU-powered solutions positions it well in the growing cloud and AI markets, potentially boosting its stock in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Microsoft Azure's role in deploying Nvidia and AMD GPU solutions underscores its strong position in the cloud and AI sectors.
Microsoft's strategic use of Nvidia and AMD GPUs within Azure showcases its competitive edge in the cloud and AI markets, likely contributing to positive stock performance.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Nvidia rebounds after losing over $200 billion in market value, with strong demand for AI and cloud services driving optimism.
Nvidia's recovery is attributed to the ongoing demand for AI capabilities and cloud services, despite the recent selloff. The company's significant role in the AI accelerator market and partnerships with major cloud service providers underpin its rebound.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100