What's Going On With Nvidia And Other Chip Stocks On Wednesday?

Nvidia Corp NVDA, along with other chip stocks, are trading higher Wednesday in sympathy with Marvell Technology, Inc MRVL bearing testimony to the interconnectivity of the semiconductor ecosystem.

On Tuesday, Marvell reported upbeat third-quarter results. The quarterly revenue grew 7% to $1.52 billion, topping the consensus estimate of $1.46 billion.

Also Read: Marvell Unveils New Platform, Targets Growing AI Bandwidth Demands

This demonstrates the growing demand for the company’s custom artificial intelligence silicon programs. EPS of 43 cents surpassed the analyst consensus estimate of 41 cents.

Marvell expects fourth-quarter revenue of $1.8 billion, plus or minus 5%, compared to the $1.65 billion consensus estimate. The company projected an EPS of 59 cents, plus or minus five cents, versus the 52-cent estimate.

Broadcom Inc. AVGO and Arm Holdings plc ARM stocks traded higher on Wednesday.

The semiconductor sector also received a boost from Amazon.Com Inc’s AMZN artificial intelligence offerings, which the company showcased at its latest annual event.

The company aimed Nvidia’s turf with the latest advanced AI chip clusters, deploying hundreds of thousands of co-developed Trainium2 semiconductors into clusters, significantly boosting Anthropic’s processing power. Amazon introduced the Nova models, which generate text, images, and video.

Additionally, the semiconductor sector is also trying to gauge the repercussions of the Biden administration’s third semiconductor sanctions against China, which prompted some chip companies to introspect their outlook.

Investors can gain exposure to the semiconductor sector through VanEck Semiconductor ETF SMH and iShares Semiconductor ETF SOXX.

Price Action: NVDA stock is trading higher by 2.13% to $143.29 on Wednesday. ARM is up 1.15%, AVGO is up 0.52%.

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