NVIDIA stock experienced a rise on Thursday, as technology stocks looked to regain their footing following a selloff inspired by the Federal Reserve on the previous day. The upcoming earnings reports from big technology companies, such as Amazon.com and Meta Platforms, are expected to shed light on the demand for NVIDIA’s artificial-intelligence chips.
In early trading, NVIDIA stock was up 0.7% after falling 2% to $615.27 on Wednesday, due to Fed Chairman Jerome Powell’s resistance to expectations of an immediate interest rate cut in March.
The earnings reports from Amazon.com and Meta Platforms are eagerly awaited as they could provide valuable insights into the sales outlook for NVIDIA’s AI semiconductors. Microsoft and Alphabet, Google’s parent company, have already highlighted increased capital expenditure in their reports this week.
Meanwhile, NVIDIA has commenced taking preorders for its H20 chip specifically for the Chinese market. Distributors are pricing it similarly to rival products offered by Huawei, as per a report by Reuters citing knowledgeable sources.
The chip has been priced by NVIDIA at $12,000-$15,000 per card. However, distributors are applying a markup that brings the price closer to that of Huawei’s Ascend 910B AI chip. No comment was provided by NVIDIA regarding this matter.
On Thursday, NVIDIA stock outperformed other chip manufacturers. Advanced Micro Devices observed a 0.5% decline in early trading, while Intel fell 0.2%. The S&P 500 showed a 0.5% increase.
NVIDIA stock continues to hover around its record high of $627.74 achieved on Tuesday. On Wednesday, trading volume amounted to 45.4 million shares, surpassing the 65-day average of 42.5 million shares.