What's Going On With Nvidia Stock Friday?

Nvidia Corp NVDA stock is trading higher Friday, still basking in the artificial intelligence-fueled boom as its peers and startups struggle to catch up.

A massive upgrade to Nvidia's sales forecast, driven by AI, helped it hit a market capitalization above $1 trillion in May. Still, demand will likely outstrip supply for its latest chips well into 2024.

SambaNova, Graphcore, and Tenstorrent have together raised over $3 billion over the last several years to catch up with the AI frenzy, Financial Times cites Dealroom.co.

Cerebras, a Silicon Valley-based AI chip startup that has raised $730 million, is looking to build and run a network of supercomputers for Abu Dhabi-based tech group G42.

Jakub Zavrel of Zeta Alpha noticed that none of these startups are making significant revenue.

He expected Advanced Micro Devices, Inc AMD as more likely to win a share from Nvidia than its peers. Intel Corp INTC is also a critical contender, while Amazon.Com, Inc AMZN Amazon Web Services, and Microsoft Corp MSFT focused on developing their custom silicon for AI.

Experts deem it baseless for startups to compete with a trillion-dollar company with unlimited resources.

Nvidia seems to have recovered from the brief setback from Taiwan Semiconductor Manufacturing Company Ltd's TSM lackluster second-quarter results.

Price Action: NVDA shares traded lower by 1.68% at $447.73 on the last check Friday.