Nvidia CEO Jensen Huang delivers a keynote speech at the Nvidia GTC conference held at the SAP Center in San Jose, California on March 18, 2024.
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Nvidia The stock was up about 3% during trading on Thursday, rebounding a day after a 7% slump as comments from U.S. presidential candidate Donald Trump stoked geopolitical concerns.
The rise of Nvidia is in British Semiconductor Demand for high-end artificial intelligence chips produced by Taiwan Semiconductor Manufacturing Company for Nvidia remains high but supply remains constrained, the company said on Thursday.
“I also tried to achieve a balance between supply and demand, but I couldn’t. Today, the demand is so high, I have to work very hard to meet customers’ needs,” Wei told analysts.
“Supply will remain quite tight until 2025,” TSMC Chairman Wei Zhongxian said on Thursday. The manufacturer reported revenue and net profit above analysts’ expectations on Thursday, sending its shares down less than 1%.
The semiconductor sector had its worst day of 2020 on Wednesday, with shares falling sharply AMD, arm, Broadcom and Qualcomm Keep pace with Nvidia. Chip stocks fell after comments from U.S. presidential candidate Donald Trump highlighted geopolitical concerns. consider changes policy toward the United States Not protecting Taiwan Invasion from China, no payment. China’s intrusion would put Nvidia’s chip supply into question.
“TSMC said it will continue its overseas expansion despite growing concerns about geopolitical tensions in light of the upcoming U.S. presidential election,” Citi analyst Laura Chen wrote in a note Thursday. , to mitigate risks, TSMC is currently building a large chip factory in Arizona, funded in part by the United States. subsidy.
Other chipmakers are still struggling. arm dropped by 2%, AMD fell 2%, and Qualcomm Very flat. ultra-microcomputer, Nvidia, the major server assembler, fell 2%.
Intel The increase exceeds 1%, and Broadcom There were reports that the company was in talks to produce artificial intelligence chips for OpenAI, and the company’s stock price rose about 3%.
Bloomberg reported Wednesday that the Biden administration is considering further trade restrictions Ships wafer manufacturing equipment to China. Dutch company ASML, which makes machines used to make chips for Taiwan Semiconductor Manufacturing Co., fell 1% on Thursday after the company reported lower sales guidance for the quarter.
Investors are taking gains from strong semiconductor companies and reallocating them to other stocks, UBS analysts wrote in a report on Thursday, despite upcoming releases later this year on how companies are gaining access to artificial intelligence. Comments on chip investment returns could spur the industry higher again. Nvidia shares are up more than 150% so far in 2024.
“The semiconductor industry has performed well in the first half, and some investors have realigned AI-related semiconductor investments into large platforms and unprofitable technology companies,” UBS analysts wrote in a report.
