was edging down early on Friday. The chip maker is expanding its investment empire but the market is still focused on potential geopolitical risks.
The stock closed up 2.6% on Thursday after a tumultuous day of swings between gains and losses. Investors are still gauging the safety of the chips sector following comments by former President Donald Trump about Taiwan, which is vital in the semiconductor supply chain.
“We believe the ‘Trump trade’ does not ruin the AI Revolution thesis and tech bull market and to some extent it’s just a negotiation that will be a long and drawn-out process,” wrote Wedbush analyst and tech bull Daniel Ives in a research note. Wedbush analysts have a target price of $120 and a Buy rating on Nvidia stock.
One other concern could be competition. Custom chip specialist
is in talks with OpenAI, the developer of ChatGPT, about developing an new AI processor, technology-focused news outlet The Information reported, citing people familiar with the matter.
was up 0.9% in premarket trading.
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Among other chip makers,
was up 0.2% and
was down 0.3% in premarket trading.
Meanwhile, Nvidia looks to be expanding its efforts in robotics. It said in a filing with the Securities and Exchange Commission that it bought 62,500 shares of sidewalk-robot delivery company
for $4 each last July. Nvidia invested in the company again in April, converting a promissory note into more than one million shares at $2.42 each.
shares were up 68% at $4.42 in premarket trading.
Nvidia shares have risen 145% this year to date through to Thursday’s close. That compares with a 16% rise in the
index and a 19% rise in the
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over the same period.
Write to Adam Clark at adam.clark@barrons.com
Source: Nvidia Stock Slips. What’s Hurting the AI Chip Maker.
