What's Going On With Nvidia Stock Tuesday?

Nvidia Corp NVDA stock is trading lower Tuesday amid heightened concerns over U.S. additional semiconductor sanctions on China.

Nvidia and other U.S. chipmakers with sizable exposure to China have expressed their concerns over the embargo and urged a softer China policy.

Also Read: US Chipmakers Urge For Softer China Policy

Interestingly, Nvidia is steering its artificial intelligence chips to small cloud providers who compete with Amazon.Com Inc AMZN Amazon Web Services and Alphabet Inc GOOG GOOGL Google. 

Now Nvidia is also asking some of those small cloud providers for their customers' names, the Information cites familiar sources.

Bernstein analyst team aggregated their estimates of increases in AI-chip spending from Microsoft Corp MSFT, Meta Platforms Inc META, Bytedance, and Google and found the four companies alone were enough for Nvidia to meet its guidance for the current quarter. Bernstein also expects other large technology companies and AI start-ups to invest aggressively in Nvidia's AI semiconductors.

Nvidia will potentially generate $75 billion - $90 billion in data-center AI revenue for 2024 versus the $42 billion consensus as per Bernstein.

Price Action: NVDA shares traded lower by 1.38% at $460.84 on the last check Tuesday.

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