Nvidia Faces Decline Amid Broader Sector Downturn
Amidst the ebb and flow of the market, NVIDIA Corporation observes its shares meandering downwards on Wednesday, mirroring the broader descent of the technology sector.
Chips Sector Falters as Super Micro Reports Mixed Earnings
The semiconductor and chip realm witnesses a setback as Super Micro Computer Inc. lays bare a mixed bag of earnings for the fourth quarter, resonating discrepancies in revenue and gross margins. The solid revenue figure of $2.18 billion stands in contrast to subpar gross margins, due in part to challenges in customer mix and ascending liquid cooling costs.
Nvidia Steps Up AI Capabilities with Samsung Partnership
In the realm of artificial intelligence (AI), Nvidia achieves a milestone by green-lighting the utilization of Samsung Electronics‘ HBM3E chips in its AI processors. This collaboration signals progress, with an impending supply agreement in sight and shipments slated to commence by the fourth quarter of 2024.
The HBM3E chips, renowned for processing copious amounts of data in intricate AI applications, are viewed as a linchpin for graphics processing units (GPUs) in the AI domain. Samsung envisions the HBM3E chips constituting 60% of its HBM chip sales by the close of this year.
Forecasts predict a substantial surge in the HBM market, skyrocketing from $4 billion in 2023 to a staggering $71 billion by 2027. Presently, SK Hynix is slated to maintain a commanding position in the HBM market in 2024, boasting a market share exceeding 52%, followed closely by Samsung at 42.4%. Micron Technology, Inc. is poised to grasp slightly over 5% of the market share.
Nvidia Stock Movement
Wrapping up the trading day, Nvidia experiences a 5.08% decline, settling at $98.95, only to inch up by 0.15% to $99.05 in after-hours trading, as per Benzinga Pro.
