What's Going On With Nvidia Stock Monday?

Nvidia Corp NVDA stock traded higher Monday amid reports indicating supplier Taiwan Semiconductor Manufacturing Company Ltd TSM sales are poised to rebound in 2024.

A surge in AI server chip demand cannot offset the overall slump in consumer electronics demand, causing TSMC to cut its revenue growth forecast for 2023 to a 10% drop. 

However, market observers believe TSMC is on course for an adequate sales rebound, DigiTimes reports.

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Previous reports claimed that the launch of new Apple Inc AAPL iPhones and strong demand for AI chips from Nvidia and peers, with robust wafer-start momentum, will likely trigger the rebound.

Last week, TSMC reported a second-quarter revenue decline of 13.7% year-on-year to $15.68 billion, beating the consensus of $15.49 billion. EPS of $1.14 beat the consensus of $1.08.

The discussions between chipmaker CEOs the U.S. diplomats over ease in China's semiconductor policy hold the potential to unlock additional value for the likes of Nvidia thanks to the ChatGPT boom.

Also last week, a group of seven Big Tech firms, including Meta Platforms Inc META, Alphabet Inc GOOG GOOGL Google, Microsoft Corp MSFT, pledged to responsibly develop artificial intelligence at a meeting with President Joe Biden.

The pledges came amid fierce competition to dominate the AI field, with experts, including Elon Musk and OpenAI's CEO Sam Altman, flagging AI risks ranging from sweeping job losses to the spread of misinformation to the possible extinction of humanity, the New York Post reports.

Price Action: NVDA shares traded higher by 0.96% at $447.35 premarket on the last check Monday.