What's Going On With Nvidia Stock Monday?

Nvidia Corp NVDA stock is up over 212% YTD and is trading higher Monday despite reports of the artificial intelligence boom casting a supply chain crisis for GPUs.

Microsoft Corp MSFT's OpenAI, and other companies cited steps they had taken to counter Nvidia H100 and A100 enterprise GPU crisis.

Also Read: Nvidia Invested in "High Bandwidth Memory" (HBM) Chips

Nvidia described that the manufacturing hangup with GPUs frequently triggers from some other component of the add-in board as opposed to the main processing unit, Tech Spot reports. 

The current problem is packaging, which the chipmaker handled with Taiwan Semiconductor Manufacturing Company Ltd's TSM 3D stacking chip-on-wafer-on-substrate (CoWoS) technology. Nvidia promised a more robust supply in the second half of 2023.

Nvidia's supply anomalies might imply an opportunity for Advanced Micro Devices, Inc's AMD Radeon 7900 XTX cards.

The AI boom has already arrived for Nvidia, evident from its upbeat first quarter in May. CEO Jensen Huang had voiced GPUs powering AI technologies and "all in" on a single chip design.

Nvidia has already started cutting down production of GeForce RTX 4090 graphics cards for the H100s.

Nvidia's data center business will likely double sales in 2023, adding $15 billion. It is likely to add $20 billion in new sales in 2024, the New York Times cites Bernstein Research. 

However, as per Morgan Stanley strategist Edward Stanley, Nvidia is considered a proxy for the bubble in AI stocks and has neared its peak. "Bubbles tend to rally a median 154% in the 3 years pre-peak," Bloomberg cites Stanley.

Price Action: NVDA shares traded higher by 0.90% at $450.80 premarket on the last check Monday.

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