What's Going On With Nvidia Stock Tuesday?

Nvidia Corp NVDA is trading lower Tuesday in line with the broader indexes Invesco QQQ Trust, Series 1 QQQ, and SPDR S&P 500 SPY.

A lot is happening in the semiconductor space, including British chip designer Arm Ltd eyeing a valuation of $50 billion - $54 billion for its U.S. IPO, China launching its war chest against U.S. semiconductor sanctions, and Nvidia CEO Jensen Huang's meeting with Indian Prime Minister Narendra Modi.

Softbank Group Corp SFTBF (SFTBY) backed chip designer targeted a share price bracket of $47 - $51, depending on the market appetite. 

The ambitious IPO has already won the likes of Nvidia, Apple Inc AAPL, and more high-profile tech giants as anchor investors. Previous reports indicated the chip designer is eyeing a valuation of $60 billion - $70 billion in an IPO by September.

Meanwhile, China is preparing to launch a new state-backed investment fund to raise 300 billion yuan ($41 billion) for its semiconductor sector, with chip manufacturing equipment as a primary investment area. 

Nvidia might miss out on this incremental opportunity due to the U.S. sanctions.

Huang's meeting with the Indian PM fueled speculations of Nvidia setting up a GPU and artificial intelligence chip factory in India.

Nvidia first set up operations in India in 2004, with their initial base in Bangalore.

India hosts four engineering development centers in Gurugram, Hyderabad, Pune, and Bengaluru, employing over 3,800 professionals at Nvidia in India.

Price Action: NVDA shares traded lower by 0.87% at $480.88 on the last check Tuesday.