However, Nvidia faces challenges due to the geopolitical divide between the US and China, which is causing friction in the global chip industry. In response to US restrictions on Chinese access to key technologies, Nvidia is reportedly developing three new chips for China. The company's upcoming earnings call is expected to address these issues, as well as other potential headwinds such as rising AMD competitiveness and claims that Nvidia chips are too expensive for generative AI inference.
Key takeaways:
- Nvidia's shares have increased by 22% since the start of November, adding $220 billion in market value.
- The company's shares have been on their longest winning streak since December 2016.
- Nvidia recently unveiled the H200 AI Accelerator chip, designed to provide consumers with high-bandwidth memory that boosts performance and is compatible with previous chip installations.
- Nvidia faces challenges due to the geopolitical divide between the US and China, and is reportedly making three new chips for China in response to US limits on Chinese access to key technologies.