What's Going On With Nvidia Stock Wednesday?

Nvidia Corp NVDA continues to hog eyeballs as U.S. chipmaking companies try to negotiate with the U.S. government over a softer stance on its China semiconductor policy.

Meanwhile, Nvidia is nearing a deal to take an equity stake in Lambda Labs startup that competes with Amazon.Com, Inc AMZN Amazon Web Services and other established cloud providers in renting servers with Nvidia chips to other companies.

Also Read: US Chipmakers Try To Cajole US Diplomats Towards Softer China Policy

A deal, which could total $300 million in new capital and might value the company on paper at over $1 billion, including the new capital, would bring Nvidia closer to Lambda after the chip designer took a similar equity stake in CoreWeave, a Lambda rival, the Information reports.

On Tuesday, BofA Global Research analyst Vivek Arya reiterated his Buy rating for Nvidia stock and raised his price target to $550 from $500, given more robust growth opportunities ahead as gaming cycle troughs and data center demand potentially face substantial and long-term demand dynamics.

Interestingly, Qualcomm Inc QCOM tapped Meta Platforms Inc META to optimize the execution of Meta's Llama 2 large language models directly on devices like smartphones, PCs, VR/AR headsets, and vehicles, helping developers to save on cloud costs.

So far, LLMs have primarily run in large server farms, on Nvidia graphics processors, due to the technology's vast need for computational power and data. 

Price Action: NVDA shares traded lower by 0.49% at $472.59 on the last check Tuesday.

Photo by Mizter_X94 via Pixabay