What's Going On With Nvidia Tuesday?

Artificial intelligence kingpin Nvidia Corp NVDA keeps hitting the headlines courtesy of the AI frenzy, Alphabet Inc GOOG GOOGL being the latest tech juggernaut to notch up its AI offerings.

The ace chipmaker scaled higher since its upbeat second-quarter results and ambitious outlook made its previously steep valuation appear cheaper than its rivals.

However, the caveat seems to be Taiwan Semiconductor Manufacturing Company Ltd TSM responsible for making Nvidia’s chips, the Financial Times reports. 

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TSMC’s second-quarter revenue declined despite the proportion of revenues from TSMC’s High-Performance Computing segment remaining essentially unchanged from the previous year.

Nvidia’s rapidly rising margins reflect its pricing power and dominant market share for the hottest graphics processing chips.

Nvidia’s premium AI processor, the H100, selling at steep premiums in the second-hand market, reflects the onslaught of the supply crisis.

Also, concerns loom due to China’s tense geopolitical relations with Taiwan, especially with the U.S. tightening sanctions on the former.

Meanwhile, Nvidia’s rivals also kicked off their strategies to tap the AI frenzy. 

Advanced Micro Devices, Inc AMD remains focused on Radeon RX 7800 and RX 7700 series graphics cards launch.

Microsoft Corp MSFT backed OpenAI showcased its corporate-focused ChatGPT Enterprise to cater to a diverse business clientele.

Also, Intel Corp INTC shared plans about a next-generation data center chip likely for a 2024 launch. The chip promises to provide over double the computational capability amid global efforts to reduce energy consumption. 

Price Action: NVDA shares traded higher by 3.35% at $484.02 on the last check Tuesday.