Nvidia shares inch lower with upcoming quarterly earnings, China outlook in focus
Investing.com | Author Scott Kanowsky
Published Nov 21, 2023 01:13AM ET
Updated Nov 21, 2023 10:51AM ET
Investing.com -- Nvidia (NASDAQ:NVDA) shares were slightly lower in early U.S. trading on Tuesday, as investors awaited quarterly earnings from the world’s most valuable chipmaker and its updated outlook for demand in China.
Any comments from Nvidia on its Chinese business will likely be a major focus. Analysts are keen to parse out the ramifications of extended U.S. curbs on cutting-edge AI-related technology to China, which accounts for 25% of sales at Nvidia's crucial data center unit.
Recently, Chinese tech giants Alibaba Group (NYSE:BABA) and Tencent Holdings Ltd (HK:0700) have warned of potential disruptions from the bans. Tencent in particular said it had stockpiled Nvidia chips, but was now seeking new sources.
However, California-based Nvidia claimed in a regulatory filing in October that it does not expect the stricter controls will have "a near term meaningful impact on our financial results" due to "the strength of demand for our products worldwide." The stock, perhaps the most prominent beneficiary of a surge in enthusiasm over generative artificial intelligence this year, has so far managed to shrug off worries about the restrictions, touching a record high last week that gave it a valuation of $1.2 trillion.
Nvidia's latest returns will cover the three months until the end of October, meaning that the effect of the expanded bans -- which were only announced by the Biden administration last month -- may be limited. Forward guidance, as a result, is set to be squarely in the spotlight.
Nvidia's Asian suppliers gain/h2
Shares of Nvidia's Asian suppliers posted gains on Tuesday ahead of the expected unveiling of the firm's third-quarter results following the close of trading on Wall Street.
Japan’s Advantest Corp. (TYO:6857), which supplies chip testing equipment to Nvidia, rose 2.9%, while Taiwan Semiconductor Manufacturing Corp. (TW:2330), or TSMC, added 1.4% in Taiwan trade.
Japanese chipmaking equipment maker Tokyo Electron Ltd. (TYO:8035) climbed by 1.1%, while South Korea’s SK Hynix (KS:000660) and Samsung Electronics (KS:005930) edged up 0.5% and 0.1%, respectively. Japanese tech conglomerate SoftBank Group Corp. (TYO:TYO:9984), which has exposure to Nvidia through its Arm Holdings (NASDAQ:ARM) unit, added 0.9%.
Get The News You Want
Over the past three quarters, Nvidia has beaten estimates, with the group receving a massive boost from a boom in demand for its AI-optimized chips.
Ambar Warrick contributed to this report.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.