What's Going On With Nvidia Stock On Tuesday?
Portfolio Pulse from Anusuya Lahiri
Nvidia Corp (NASDAQ:NVDA) may face challenges in the Chinese market due to Huawei's new AI chip, the Ascend 910C. This chip aims to fill the void left by U.S. export controls that prevent Nvidia from selling its advanced chips in China. Major Chinese companies like ByteDance and Baidu Inc (NASDAQ:BIDU) have shown interest in Huawei's chip, potentially threatening Nvidia's market share. Despite this, Nvidia's stock has risen over 149% in the last 12 months. Investors can gain exposure to Nvidia through SPDR Select Sector Fund – Technology (NYSE:XLK) and Vanguard Information Tech ETF (NYSE:VGT).
August 13, 2024 | 3:11 pm
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POSITIVE IMPACT
Baidu Inc (NASDAQ:BIDU) has shown interest in Huawei's new AI chip, the Ascend 910C, which could enhance its AI capabilities and reduce reliance on Nvidia's chips.
Baidu's interest in Huawei's AI chip could enhance its AI capabilities and reduce its reliance on Nvidia, potentially benefiting Baidu's technological advancements.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEUTRAL IMPACT
Vanguard Information Tech ETF (NYSE:VGT) provides exposure to Nvidia, which may face challenges in China due to Huawei's new AI chip. However, Nvidia's strong performance over the last 12 months may mitigate short-term impacts.
While Nvidia faces challenges in China, its strong performance over the last 12 months may mitigate short-term impacts on VGT.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 30
NEUTRAL IMPACT
SPDR Select Sector Fund – Technology (NYSE:XLK) provides exposure to Nvidia, which may face challenges in China due to Huawei's new AI chip. However, Nvidia's strong performance over the last 12 months may mitigate short-term impacts.
While Nvidia faces challenges in China, its strong performance over the last 12 months may mitigate short-term impacts on XLK.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 30
NEGATIVE IMPACT
Nvidia may face significant challenges in the Chinese market due to Huawei's new AI chip, the Ascend 910C, which aims to replace Nvidia's advanced chips restricted by U.S. export controls.
Huawei's new AI chip could significantly impact Nvidia's market share in China, especially if major companies like ByteDance and Baidu adopt it. The U.S. export controls further exacerbate Nvidia's challenges.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100