Nvidia’s stock saw a slight decline early Wednesday, failing to receive a significant boost from the announcements made at its GTC developer event. However, the event did contribute to a rise in shares of Samsung Electronics.
During premarket trading, Nvidia shares were down 0.4% at $890.70. The stock had closed up 1.1% on Tuesday at $893.98. While Nvidia’s announcements at its developer conference didn’t have a notable impact on its own stock, it still has the potential to influence other companies positively. Following reports that Nvidia may incorporate Samsung Electronics’ high bandwidth memory chips into its graphics-processing units in the future, Samsung’s shares surged by 5.6% on Tuesday.
Nvidia’s CEO Jensen Huang mentioned at a media briefing that the company was testing Samsung’s HBM chips, as reported by Reuters. If approved, Samsung would join local competitor SK Hynix and U.S. company Micron Technology as a supplier of HBM chips to Nvidia, which are crucial for enabling AI workloads on its hardware.
In response to this news, SK Hynix shares experienced a 2.3% decline in local trading in South Korea on Wednesday, while Micron’s stock showed a 0.2% increase in premarket trading ahead of its earnings report scheduled after the close of trading on Wednesday.
In premarket trading, the performance of other chip makers varied, with Advanced Micro Devices (AMD) witnessing a slight decline of 0.3%, while Intel saw a notable uptick of 2.8%. The surge in Intel’s stock followed the announcement that the company would receive up to $8.5 billion in government funding.
Nvidia’s shares have experienced a remarkable ascent this year, climbing by 81% as of Tuesday’s close. This surge far surpasses the gains seen in broader market indices, with the S&P 500 index posting an 8.6% increase and the Nasdaq Composite gaining 7.7% over the same period.
Despite the substantial rise in Nvidia’s stock value, Wall Street analysts remain optimistic about its future prospects. Harsh Kumar, an analyst at Piper Sandler, recently raised his target price on Nvidia to $1,050 from $850 in a research note issued on Wednesday. Kumar maintained an Overweight rating on the stock, emphasizing Nvidia’s leading position in offering a comprehensive hardware and software stack to address the ongoing transition to accelerated computing and generative AI.
“We maintain that Nvidia is the leading company in offering the full hardware and software stack to address the decade-long transition to accelerated computing and generative AI,” Kumar wrote in his research note, highlighting the company’s robust positioning in key technological sectors.