Nvidia Corp (NASDAQ:NVDA) stock is trading higher Thursday as the artificial intelligence frenzy is in no mood to cool down.
Nvidia’s market value more than tripled in 2023, mainly due to its role in AI development, and saw a further 24% increase this year. Nvidia has adapted by creating semiconductors for the Chinese market that comply with U.S. restrictions.
Meanwhile, reports indicated Nvidia CEO Jensen Huang recently met with Taiwan Semiconductor Manufacturing Co (NASDAQ:TSM) executives, including CEO C.C. Wei and founder Morris Chang, in Taipei.
This meeting is significant considering the AI boom since 2023 and TSMC’s role as a primary producer of Nvidia’s chips, which is vital for generative AI training systems globally.
The meeting addressed AI chip supply constraints crucial to the ongoing AI boom, Bloomberg reports.
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Huang, who also recently visited mainland China, emphasized Taiwan and TSMC’s critical role in Nvidia’s operations and the broader semiconductor industry.
Huang’s trip to Taipei followed his first mainland China visit in four years amidst U.S. restrictions on exporting Nvidia’s high-end chips.
Huang highlighted the challenge of scaling AI capacity and the efforts of TSMC and other supply chain partners to meet rising demand. He also acknowledged Taiwan and TSMC’s pivotal role in Nvidia’s business and the semiconductor industry at large.
Huang expressed optimism about the significant growth expected this year.
The AI surge also boosts TSMC, which forecasted higher capital spending and revenue growth, sparking a rally in chip stocks.
Analysts maintain a bullish stance on Nvidia, driven by positive trends in PC improvement, AI deep learning, inferencing markets, and gaming, automotive, and data center sectors. Big Tech companies continue to enhance their AI capabilities aggressively.
Analysts recognize a $1 trillion AI-driven opportunity, positioning Nvidia at the forefront with its GPU and chip supply leadership.
The stock gained 218% last year, outperforming the broader indexes.
Price Action: NVDA shares traded higher by 1.69% at $623.99 premarket on the last check Thursday.
Also Read: Is Intel A Sleeping Giant Or Stuck In Neutral? Analyst’s Latest Take Sheds New Light
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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