With markets marching forward, Jay Woods joins Diane King Hall at the NYSE to figure out what winds are pushing stocks to new highs. Jay looks to the post-earnings rallies taking place with semiconductor and memory stocks.
NVIDIA Corporation's NASDAQ: NVDA $500 million direct warrant injection into Corning Incorporated NYSE: GLW unequivocally confirms that physical optical bandwidth operates as the definitive bottleneck for next-generation artificial intelligence (AI) processing. Silicon architecture and graphics processing units can only calculate data as fast as the physical infrastructure allows it to transfer.
Nvidia stock (NASDAQ: NVDA) rose about 5.8% on Wednesday after the company unveiled a $500 million partnership with Corning to expand US optical connectivity manufacturing for AI data centers. The development also pushed Corning stock 20% in premarket trading.
Nvidia (NASDAQ: NVDA) shares are now lagging behind the broader semiconductor sector by the widest margin in more than two years, despite an overwhelmingly bullish analyst outlook.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) shares are up by about 5% midday Wednesday, trading near $206 after the chip leader unveiled a $500 million strategic supply agreement with Corning (NYSE:GLW) focused on optical connectivity for AI data centers.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) at $196.50 sits at an interesting level.
Nvidia stock was rising Wednesday but gains were smaller than many of its chip-company peers.
Even if the latest surge proves unsustainable and shares of Nvidia (NASDAQ:NVDA | NVDA Price Prediction) are destined to fly under $200 per share for another quarter or even another year, it's becoming harder to argue against the value case, even if you think the margins will compress by a bit and the growth takes a few backward steps.
Nvidia CEO Jensen Huang on Tuesday laid out his vision for physical AI in an interview with CNBC. "The entire manufacturing line will be operated by robots, managed by more robots," Huang said.
Nvidia's CEO has reportedly dismissed fears that AI will replace the American worker. “AI creates jobs,” Jensen Huang argued in an interview with CNBC's Becky Quick Monday (May 4) evening.
Nvidia ( NASDAQ :NVDA | NVDA Price Prediction ) is up over 93% in the past year, though it is up less than 2% in the past six months.
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