What's Going On With Nvidia Stock Monday?

Nvidia Corp NVDA is trading higher Monday in line with broader market ETFs SPDR S&P 500 SPY and Invesco QQQ Trust, Series 1 QQQ.

Reportedly, Amazon.Com, Inc AMZN is designing custom microchips, Inferentia and Trainium, for AWS' generative AI training and acceleration to bypass Nvidia GPUs for large language model training.

Also Read: Good Entry Point To Buy Into Nvidia Stock, Says Analyst Ahead Of Q2 Results: 'We See Numbers Are Going Up'

Microsoft Corp META, Alphabet Inc GOOG GOOGL, and Meta Platforms Inc META also remained focused on in-house chip building.

Also, July PPI data showed greater-than-expected inflation last week, posing as a bummer for the broader indexes.

Previous reports indicated Nvidia might struggle with surging demand for AI chips translating into opportunities for Advanced Micro Devices, Inc AMD. 

The U.S. AI chip sanctions further caused demand-supply imbalances as the Chinese companies ordered in advance, fearing further repercussions. Chinese technology companies, including Huawei Technologies and Alibaba Group Holding Limited BABA, continue building their AI chips.

Analysts expected some correction in the chipmaker's sway to the trillion-dollar club, expecting a measured 2Q after the smashing Q1.

Price Action: NVDA shares traded higher by 3.06% at $421.04 on the last check Monday.

Photo courtesy of Nvidia.