What's Going On With Nvidia Stock Today?

Nvidia Corp NVDA stock is trading higher along with some of its peers as the U.S. prepares to implement another round of semiconductor technology sanctions on China, a significant market for chipmakers like Nvidia.

Many U.S. chip firms generate over 20% of their revenue from China, and industry executives have argued that reducing those sales would cut into profits that they reinvest in R&D.

Previously, Nvidia chief Jensen Huang had flagged the repercussions of U.S. technology sanctions on China.

Nvidia and peer chipmakers are currently canvassing the U.S. government to go softer on its China policy.

Nvidia, valued at over $1 trillion, is traced back to a Denny’s in San Jose, where the company’s founders first conceptualized the idea in 1993. Nvidia has transformed from a company primarily focused on high-end video gaming chips to an artificial intelligence (AI) leader, the Wall Street Journal reports.

Nvidia’s rise in the data center segment reflects the versatility of its graphics processing units (GPUs), which enhance the computing performance of traditional central processing units. 

The company’s revenue in this segment soared from $339 million in fiscal 2016 to over $15 billion last year. The launch of OpenAI’s AI chatbot ChatGPT bolstered Nvidia’s standing. A significant aspect of Nvidia’s dominance in AI is its early investment in software. 

Nvidia GPUs found extensive applications beyond gaming, particularly in AI and data centers of tech behemoths like Alphabet Inc GOOG GOOGL Google, Microsoft Corp MSFT, and Amazon.Com, Inc AMZN.

Price Action: NVDA shares traded higher by 1.83% at $456.89 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.