Nvidia’s stock price rose 2.9% to close at $133.57 on Monday, despite a report that OpenAI is developing its own AI chips to reduce reliance on Nvidia processors. The company plans to finalize the design for its first in-house chip within the next few months with Taiwan Semiconductor Manufacturing (TSMC).
Nvidia’s decline in recent weeks was partly due to news of China’s DeepSeek announcing a low-cost AI computing system, which raised questions about hyperscale cloud providers’ expensive AI data center buildouts. However, Google parent Alphabet, Amazon.com, Facebook parent Meta Platforms, and Microsoft have reiterated their commitment to increasing capital expenditures.
Evercore ISI analyst Mark Lipacis has upgraded Nvidia stock to “tactical outperform” ahead of the company’s fiscal fourth-quarter earnings report on February 26. He expects a positive report from Nvidia, citing his firm’s channel checks that align with its long-term thesis. Lipacis has set a price target for Nvidia at $190.
NXP Semiconductors also made headlines after announcing an agreement to buy Kinara, a maker of high-performance discrete neural processing units, for $307 million. TSMC warned about the impact of recent earthquakes and aftershocks on its first-quarter revenue, but reiterated its full-year outlook. Onsemi’s stock dropped 8.2% after delivering disappointing fourth-quarter results.
Semtech’s stock plummeted 31% to $37.60 on Monday following a regulatory filing that revealed lower-than-anticipated sales for its CopperEdge products.
Source: https://www.investors.com/news/technology/nvidia-stock-openai-concerns