Nvidia Riding a Risk-On Wave Despite Chinese Competitor News

about 1 month ago

Nathan Hager & Valerie Teitel

"Every single one of them is in the green. ... It is a positive day for the equity market and leading those gains for the Mag 7 is NVIDIA, up nearly two and a half percent in overnight trade. This is just on the back of the fact that the Fed cut rates yesterday because they can, not necessarily because they have to. And I think that's led to a reassessment that it's risk on after this Fed cut. It's funny that NVIDIA is surging so much because there actually was some negative news that came out of China overnight. Huawei said that they have unveiled a new AI chip technology with greater computing power in a bid to challenge NVIDIA's dominance in the AI chip space."

The hosts note that Nvidia is up nearly 2.5% overnight, driven by a Fed rate cut that has encouraged a risk-on sentiment among investors despite competitive warnings from Huawei, which recently announced a new AI chip. The commentary underscores Nvidia's strong position amid positive market moves.

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