NVIDIA today
(Upto 06:15 PM)
- 52-week range
- $45.41
▼
$152.89
- Dividend yield
- 0.03%
- P/E ratio
- 57.09
- Price target
- $164.15
reports that NVIDIA NASDAQ: NVDA Its Blackwell chips are buzzing in the semiconductor industry. The news is good for many reasons, but there are obstacles and risks to overcome. The good news is that a path to expanded blackwell production and reduced geopolitical risk is clear. The bad news is that Taiwan Semiconductor NYSE: TSM Not 100% capable of making chips in the US, at least not yet.
Blackwell’s NVIDIA onshoring and ramping production
Onshoring the production of NVIDIA chips aligns with national interests and reduces geopolitical exposure to China, but that’s not possible with this deal. TSMC’s Arizona facility is state-of-the-art but not equipped for CoWoS or chip-on-wafer-on-substrate packaging, a proprietary process developed for high-intensity computing and production. AI is required. This means that Blackwell will have to send chips to Taiwan to complete, geopolitical risk and many others to bring back into the equation, but there is hope.
TSMC was awarded $6.6 billion in CHIPS Act funding as part of a total investment plan of $65 billion. The money will be used to build new facilities, which could include a new CoWoS facility critical to the onshoring of Blackwell production. The company is already considering new plants in Japan and the US to meet increased demand and plans to more than double its production capacity by 2026.
Hope to have a deal with Amkor NASDAQ: AMKR Will meet NVIDIA’s needs between then and now. Amkor is a global supplier of microchip packaging services and will perform CoWoS at its Arizona facilities. TSMC and Amkor struck a deal earlier this year, and the first production facility plans are set. Early TSMC customers are likely to benefit Advanced Micro Devices NASDAQ: AMDNVIDIA’s most significant competition in AI GPUs and CPUs, and apple NASDAQ: AAPL. The bad news is that the first phase won’t be completed until 2027 or later, and the final phases are slated to open in the middle of the next decade.
NVIDIA will surprise the market with Ruby in 2025
is growing Speculation That NVIDIA will surprise the market and release the next generation AI technology Six months ahead of schedule. The news is reinforcing the updraft in share prices and likely continued data center upgrades over the long term. Rubin is expected to produce better results thanks to its AI-specific architecture, TSMC’s advanced 3nm manufacturing process, and next-generation HBM4 memory. The chips are expected to be more powerful, store more data faster, and work more efficiently than their predecessors. NVIDIA has also partnered with Schneider Electric to develop innovative cooling systems for its advanced GPU and CPU products.
MarketBeat has not tracked activity of the analyst Related to TSMC/Arizona news, but the group is active in 2024, and trends are positive. The range of analysts is expanding; Sentiment remains at a strong buy, and the consensus price target is rising. The price target rose nearly 15% in November alone, and revisions led to even higher price points. Consensus assumes about 15% above the critical support target while the high-end adds another 25%.
Price action late into 2024 is bullish, with the stock at fresh all-time highs and showing support at a critical level. The critical level is consistent with the previous all-time high and the top of the consolidation range. The next big move will likely be higher, with a critical resistance target near $150. A move above that level would likely trigger another momentum rally and take the market to the $190 to $200 range.
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