The days of Nvidia (NVDA) trading in a narrow range may end. CEO Jensen Huang said during a CNBC interview that demand for AI chips is “insane.”
The chip giant sells a core component needed for AI servers. The company is partnering with consulting firm Accenture (ACN). The newly created business group will have trained consultants helping its clients build custom AI solutions. The tools will include Nvidia and Meta’s (META) Llama collection.
In AI stock trading news, Super Micro Computer (SMCI) is now trading in a range of between $40.25 - $42.00. SMCI stock recently split ten-for-one. This should increase the daily trading activity as retail investors speculate on the stock. Risks are still high with SMCI stock. The company does not have sufficient internal controls in accounting. As a result, it delayed its 10-K filing.
SMCI has weak profit margins. This makes the firm vulnerable to an abrupt shift in demand. If consumers cut orders, the server supplier will have excess inventory that would eventually be written off.
Nvidia’s strong relative performance lifted other semiconductor suppliers. Analog Devices (ADI), Qualcomm (QCOM), and NXP Semiconductor (NXPI) rose yesterday. Intel (INTC) fell while Micron Technology (MU) dropped slightly.
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