What Is Going On With Nvidia Stock Wednesday?

Nvidia Corp NVDA continues to command investor attention as Microsoft Corp MSFT and Alphabet Inc GOOG GOOGL post upbeat quarterly results.

Microsoft reported Q4 revenue of $56.2 billion, up 8% year-over-year, beating the Street consensus estimate of $55.47 billion.

The company reported earnings per share of $2.69, ahead of a Street estimate of $2.55.

It acknowledged the focus on leading the new AI platform shift.

Alphabet said second-quarter revenue increased 7% year-over-year to $74.604 billion, which beat the consensus estimate of $65.42 billion. 

The company reported quarterly earnings of $1.44 per share, which beat analyst estimates of $1.20 per share.

Alphabet also mentioned how AI drove the next evolution of Search and improved its services.

Also, a report indicated that Nvidia and OpenAI could collaborate over an AI model that can combine not thousands but millions of GPUs.

Nvidia has supplied around 20,000 of its brand-new AI GPUs to OpenAI, likely for further expansion in the coming months.

Nvidia and OpenAI have already collaborated on ChatGPT, whose latest GPT-4 model utilizes several thousands of AI GPUs.

According to Wang Xiaochuan, the founder of the Chinese search engine Sogou, ChatGPT is already working on a more advanced AI computing model that can connect 10 million AI GPUs together.

Given the current capacity of Nvidia, the company can only produce a million AI GPUs. But Nvidia is working with Taiwan Semiconductor Manufacturing Company Ltd TSM to increase supply.

Thanks to its Hopper and Grace GPUs, analysts have already crowned Nvidia the biggest beneficiary of the generative AI boom.

Price Action: NVDA shares traded lower by 0.82% at $453.06 on the last check Wednesday.

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