What's Going On With Nvidia Stock Wednesday?

Nvidia Corp NVDA saw its stock rise after announcing an upgrade to its H200 GPU to incorporate high-bandwidth memory, enhancing its AI system development capabilities. 

Additionally, optimism that the Federal Reserve's interest rate hikes have peaked further boosted the stock's value.

Also Read: Nvidia Likely to Outperform in Data Center and Gaming Segments: Goldman Sachs Analyst

The chip designer stock gained 2.1% on Tuesday, adding $2.20 billion in market value.

Thanks to the AI-driven frenzy, the stock gained over 240% in 2023, making it the best-performing component on the Nasdaq 100 and S&P 500 indexes.

Wolfe Research analyst Chris Caso notes that Nvidia's update of its data center GPUs, a response to AI market growth and performance needs, strengthens its competitive edge. Nvidia's current AI accelerator is already in high demand. 

Bloomberg Intelligence analyst Kunjan Sobhani highlights that Nvidia's accelerated launch of the H200 in mid-2024, featuring high-bandwidth memory, will likely maintain its market dominance and set a new standard for GPUs. 

Nvidia's peer Advanced Micro Devices, Inc AMD will launch its rival MI300 chip to market in the fourth quarter. Intel Corp INTC claims its Gaudi 2 model is faster than the H100.

Meanwhile, Nvidia is preparing to distribute samples of its new chip models to China, prioritizing clients affected by recent U.S. sanctions. 

The upcoming chips, H20, L20, and L2, are designed to comply with U.S. export regulations. Nvidia commanded over 90% of China's $7 billion AI chip market.

On a separate note, Nvidia and National Tsing Hua University (NTHU) have formed a significant partnership, creating the "Tsing Hua-Nvidia Joint Innovation Center," a collaborative effort to foster AI innovation and nurture talent.

Price Action: NVDA shares traded higher by 0.55% at $499.28 premarket on the last check Wednesday.