Nvidia (NVDA) stock rose on Monday morning after reports that the semiconductor giant plans to mass produce new AI chips designed for China in 2024. Yahoo Finance reporter Madison Mills breaks down the details from the floor of the New York Stock Exchange. .
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Editor’s note: This article was written by luke carberry morgan.
video transcript
Sheena Smith: Let’s also take a look at NVIDIA. Today’s hot stock. The semiconductor giant is now reportedly considering starting production of new AI chips for China in the second quarter. According to a report by Reuters. Yahoo Finance’s Madison Mill is on hand to tell you more about this. Maddy.
Madison Mills: Yes, you are exactly right, Sheena. NVIDIA’s market cap could have a broader impact on today’s trading than some of the other noisy companies we’ve been talking about, like the airlines, so this is a stock to watch today.
So why is this stock moving this morning? Regardless of the news that NVIDIA plans to offer more powerful AI chips, one particular chip, in China in the second quarter of 2024. Previously, this was provided by NVIDIA. They were working on two other chips that would allow them to be sold in China in accordance with US regulatory measures.
However, this chip is a little more interesting for Chinese consumers. That’s because it’s more powerful than his two previous chips. I’ve heard in the past from Alibaba and Huawei that they aren’t excited about NVIDIA’s inferior quality chips. Today’s chip news changes that.
So, in the coming days, we’ll see if we get any comments or reactions from Alibaba or Huawei on how they feel about this new, more powerful AI chip coming from NVIDIA in Q2 2024 I am thinking of doing so.
In terms of market trends, NVIDIA is the top performer in today’s Magnificent Seven. Is this what traders are clinging to trying to get some movement in Mag7 after last week’s poor performance on Apple’s downgrade?
Once again, NVIDIA is the best performer in the Mag Seven industry so far. Looking ahead to the rest of today, could this name lift that index? Or could the Fed say something later this afternoon that puts a little damper on that market move? Or?
Brad Smith: Well, that’s certainly one of the big questions as we finish 2023. And as her 2024 begins, will there be continued momentum for the Mag Seven deal here? Our very own Maddie Mills is great in her own way. Thank you so much, Maddy. appreciate.