Nvidia AI Chips Double in Price on China's Black Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Source: Newsfilter
- Black Market Surge: According to the Financial Times, Nvidia's AI chips have more than doubled in price on China's black market, indicating a strong demand for high-performance chips that could disrupt the supply-demand balance in the legitimate market.
- Soaring Market Demand: Multiple Chinese chip traders have noted that the scarcity of Nvidia chips has led to increased black market activity, reflecting widespread interest in AI technology and potentially influencing investment decisions across related sectors.
- Verification Challenges: Reuters could not immediately verify the report's authenticity, suggesting that the opacity of market information may heighten investor caution, impacting Nvidia's stock price volatility.
- Strategic Implications: Should black market prices continue to rise, Nvidia may need to reassess its pricing strategy in the Chinese market, which could affect its overall profitability and market share.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 208.650
Low
200.00
Averages
264.97
High
352.00
Current: 208.650
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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