What's Going On With Nvidia Stock Tuesday?

Nvidia Corp NVDA stock is trading higher Tuesday as U.S. chipmaker executives tried to canvass U.S. government officials to go softer on the China policy.

U.S. chip company executives met with top Biden administration officials on Monday to discuss China policy urging a halt to more curbs.

Commerce Secretary Gina Raimondo, National Economic Council director Lael Brainard, and National Security Council director Jake Sullivan were among other government officials meeting with Intel Corp INTC, Qualcomm Inc QCOM, and Nvidia Corp NVDA, Reuters cites familiar sources.

Also Read: US Tech Embargo Has Pushed Beijing for Self-Sufficiency, Drives Local Chip Equipment Firms to Double Profits

In 2022, China accounted for $180 billion in semiconductor purchases, more than a third of the worldwide total of $555.9 billion, and the largest single market, as per Semiconductor Industry Association (SIA).

Nvidia tweaked its AI chip for the Chinese market, which is already gaining traction.

Separately, Chinese chip startup Shanghai Biren Intelligent Technology Co is weighing a Hong Kong initial public offering by 2023 to tap the surge of local clients turning to AI chips following the tighter Nvidia embargo.

Meanwhile, the startup is also in discussions with investors, including state-backed funds in Guangzhou, for a separate funding round, which could raise about 2 billion yuan ($279 million), Bloomberg cites familiar sources.

Founded in 2019, Biren focuses on graphics processing units and cloud computing.

The startup has raised about 4.7 billion yuan from investors, including IDG Capital, Ping An Insurance Group Co, and China Merchants Capital. 

In August 2022, it released the first general-purpose graphics processing unit, “setting a new record in global computing power.”

Apple Inc AAPL supplier Taiwan Semiconductor Manufacturing Co TSM had suspended production of advanced silicon for Biren to ensure compliance with U.S. regulations.

Biren’s products are gaining traction among major Chinese firms in the domestic market as it gears up for its IPO. 

The startup has won orders from SenseTime Group Inc, which recently showcased a suite of new AI services, including SenseChat.

Price Action: NVDA shares traded higher by 0.84% at $468.50 premarket on the last check Tuesday.

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