Nvidia Shares Rise as Tech Stocks Aim to Recover from Selloff
Nvidia shares were on the rise on Thursday, as the technology sector seeks to regain stability following a selloff triggered by the Federal Reserve. Earnings reports from big tech companies are expected to shed light on the demand for Nvidia's artificial intelligence (AI) chips.
Nvidia Shares Show Promising Growth
In premarket trading, Nvidia shares saw a 0.9% increase, reaching $620.93. The stock had closed down 2% at $615.27 the previous day, as Fed Chairman Jerome Powell expressed hesitation regarding an interest-rate cut in March. This caused a negative impact on the overall tech sector.
Earnings Reports to Assess Demand for AI Semiconductors
The upcoming earnings reports from Amazon.com and Meta Platforms are anticipated to provide further insights into the demand for Nvidia's AI semiconductors. Both Microsoft and Google-parent Alphabet have recently announced increased capital expenditure plans, indicating a potential demand surge.
Nvidia's Entry into the Chinese Market
Meanwhile, Nvidia has commenced preorders for its H20 chip in the Chinese market. According to sources familiar with the matter, distributors are pricing it at a competitive level similar to Huawei's rival products. However, Nvidia has declined to comment on its pricing strategy.
Positive Performance within the Chip Maker Space
Nvidia is not the only chip maker experiencing growth; Advanced Micro Devices saw a 1.1% increase in premarket trading, while Intel rose by 0.4%. Additionally, S&P 500 futures gained 0.3%, and Nasdaq 100 futures rose by 0.5%.
Steady Stock Performance for Nvidia
Although Nvidia's stock closed at $615.27 on Wednesday, it remains near its all-time high of $627.74, reached on Tuesday. Furthermore, the trading volume on Wednesday surpassed its 65-day average, with 45.4 million shares exchanged.
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