What's Going On With Nvidia Stock Monday?

Nvidia Corp NVDA stock is trading higher Monday amid reports indicating that EU antitrust regulators have not formally investigated chips used for artificial intelligence, days after the French competition authority raided Nvidia for alleged anti-competitive practices.

Last week, reports suggested that the EU antitrust watchdog was informally collecting views on potentially abusive practices for graphics process units in the market.

Also Read: Chinese Vendors Bypass US Embargo to Supply High-end Nvidia A100 AI Chips: Report Reveals Hidden Market Dynamics

On a separate note, several PC hardware stores in Tokyo flagged concerns over an impending crisis of Nvidia GeForce RTX 40 series graphics cards, particularly at the high end.

The supply-demand imbalance is unrelated to Nvidia's strategic production decisions or booming AI business. 

The AI GPU surge has not impacted consumer GPU pricing like the cryptocurrency booms have in the past. 

However, a focus shift is possible if prioritizing AI GPU customers proves more profitable for Nvidia.

In Tokyo, retail back orders are extending, particularly for GPUs priced around JP ¥250,000 (approximately U.S. $1,670). One store owner attributed this to a global supply shortage and speculated that it might be a strategy by Nvidia and its partners to clear the RTX 30 stocks, Reuters writes.

In the U.S., significant retailers like Amazon.Com Inc AMZN and Newegg Commerce, Inc NEGG currently have a significant stock of GeForce RTX 4090 models. 

Analyst Rating: Goldman Sachs analyst Steven Kron added Nvidia to the bank's 'Americas Conviction List' with a price target of $605. 

Price Action: NVDA shares traded higher by 3.39% at $449.75 on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.