What's Going On With Nvidia Stock On Wednesday?

Nvidia Corp NVDA intends to increase its investments in Taiwan, emphasizing the critical role of the local chip supply chain and its long-standing partnership with Taiwan Semiconductor Manufacturing Co TSM, stated CEO Jensen Huang in Taipei.

Despite geopolitical uncertainties, Nvidia plans to construct another supercomputer in Taiwan following the launch of Taipei-1 last year. The stock is trading higher on Wednesday.

Huang praised TSMC for its advanced technology and flexibility, highlighting its 25-year collaboration, the Nikkei Asia reports.

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Additionally, Huang expressed interest in evaluating Intel Corp INTC as a potential contract chipmaking service provider.

Recent reports indicated that TSMC is expecting a price hike, something Nvidia’s chief has already discussed.

The key contract chipmaker looks to raise the price of its AI chip production services. TSMC chief C.C. Wei cited the example of Nvidia, which was already charging a premium for its products.

Analysts maintained Nvidia as the lead AI beneficiary after the recent Taiwan event Computex, citing opportunities with its Hopper platform, Blackwell B100/200, and the ASP boost from the GB200 NVL72 full rack solution.

Nvidia has also contacted Samsung Electronics Co for high-bandwidth memory (HBM) chip supply as the industry battled supply chain constraints.

A separate report indicated that Tesla Inc TSLA will earmark $3 billion – $4 billion in 2024 on hardware purchases from Nvidia.

Nvidia stock gained over 197% in the last 12 months as the AI frenzy is in no hurry to fizzle out. Investors can gain exposure to the stock via VanEck Semiconductor ETF SMH and iShares U.S. Technology ETF IYW.

Price Action: NVDA shares traded higher by 2.96% at $1,198 at the last check on Wednesday.

Also Read: Intel Targets China Export Market – What Investors Should Know

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

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