BUZZ-Nvidia down after report of weak China demand for new AI chip
Nvidia's stock fell 1.4% to $175.24 following a Reuters report indicating weak demand for its new RTX6000D AI chip in China. Major tech firms are reportedly hesitant to place orders due to regulatory uncertainties, including an anti-monopoly probe and shipment delays of another AI chip. Despite the decline, Nvidia's stock is up approximately 30% year-to-date, outperforming the Nasdaq's 16% rise, and is currently trading at a forward PE of 31, below its 5-year average of 39.
Nvidia (NVDA.O) stock declining 1.4% to $175.24 on Tues after Reuters reported tepid demand for new RTX6000D AI chip in China NVDA’s newest artificial intelligence chip tailored for the Chinese market has seen only lukewarm demand, with some major tech firms opting not to place orders, two people with knowledge of procurement discussions said
NVDA faces regulatory uncertainty in China, including anti-monopoly probe and delays in shipments of H20 chip, another AI chip modified to comply with U.S. export restrictions
With move on the session, NVDA stock up ~30% YTD, outperforming Nasdaq (.IXIC) rise of 16%
Stock traded at 31x expected earnings, below 5-yr avg forward PE of 39
