Nvidia Stock Gains.
Nvidia Stock Gains. What TSMC Sales, China Probe Mean for Chip Maker
Dow Jones
$NVIDIA Corp(NVDA)$
12-10 23:30
Nvidia stock rose Tuesday on the back of a sales boost for the chip maker's key manufacturer, helping lift the shadow of an antitrust investigation in China.
Nvidia shares were up 1% in early trading, as it continues in its range of between $135 and $145 of the past few weeks.
The stock fell 2.6% on Monday after China's State Administration for Market Regulation said it had initiated an investigation into Nvidia due to a suspected violation of antimonopoly law. An Nvidia spokesperson said the company was happy to answer any questions from regulators.
"Even in the worst-case scenario of a complete sales ban in the Chinese market, the short to medium term impact would be limited," wrote Ming-Chi Kuo, a Taiwan-based analyst for TF International Securities, in a research note.
But a more positive note came from for Nvidia's key supplier Taiwan Semiconductor Manufacturing, which said Tuesday that its sales increased by 34% in November compared with the same month a year ago.
Taiwan Semiconductor Manufacturing -- and Nvidia -- have struggled to meet demand for artificial intelligence chips. TSMC management has confirmed plans to double advanced chip-packaging capacity, called CoWoS, by the end of 2024. CoWoS is needed to make Nvidia's highest-performing AI chips.
Among other chip makers, Advanced Micro Devices fell 1% and Broadcom was down 2.2% in morning trading.
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
