What's Going On With Nvidia Stock On Thursday?
Portfolio Pulse from Anusuya Lahiri
Nvidia Corp (NASDAQ:NVDA) stock is trading higher on Thursday due to a fallout in AI chip production discussions between SoftBank Group Corp (OTC:SFTBF) and Intel Corp (NASDAQ:INTC). SoftBank is now turning to Taiwan Semiconductor Manufacturing Co (NYSE:TSM), a key Nvidia supplier. Intel's financial struggles, including a $7 billion operating loss, contributed to the failed deal. Nvidia's stock has been volatile but is up over 176% in the last 12 months. Investors can gain exposure to Nvidia through Vanguard S&P 500 ETF (NYSE:VOO) and SPDR S&P 500 (NYSE:SPY).
August 15, 2024 | 3:59 pm
News sentiment analysis
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NEGATIVE IMPACT
Intel's failure to meet SoftBank's demands for AI chip production and its financial struggles, including a $7 billion operating loss, negatively impact its stock.
Intel's inability to secure the AI chip production deal with SoftBank, coupled with its financial losses, is likely to negatively impact its stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Nvidia's stock is trading higher due to SoftBank's shift from Intel to Taiwan Semiconductor for AI chip production, making Nvidia's valuation more attractive.
The shift in AI chip production to a key Nvidia supplier boosts investor confidence in Nvidia's future prospects, leading to a positive impact on its stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
SPDR S&P 500 ETF, which includes Nvidia, may see a positive impact due to Nvidia's stock rise.
As Nvidia's stock rises, ETFs like SPDR S&P 500 that include Nvidia may see a positive impact.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Taiwan Semiconductor Manufacturing Co benefits from SoftBank's shift in AI chip production, potentially increasing its revenue and stock price.
As SoftBank turns to Taiwan Semiconductor for AI chip production, TSM is likely to see increased demand and revenue, positively impacting its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Vanguard S&P 500 ETF, which includes Nvidia, may see a positive impact due to Nvidia's stock rise.
As Nvidia's stock rises, ETFs like Vanguard S&P 500 that include Nvidia may see a positive impact.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50