What's Going On With Nvidia Stock Tuesday?

Artificial intelligence stock play Nvidia Corp NVDA continues to make headlines amid intensifying U.S. technology sanctions, with reports citing the chip designer making Arm Holdings Plc ARM-based PC chips, which could challenge Intel Corp INTC.

Reportedly, Nvidia is developing central processing units (CPUs) designed to support the Windows operating system from Microsoft Corp MSFT.

Also Read: How Apple and Nvidia Could Boost Samsung’s Financial Landscape?

Truist analyst William Stein (Buy rating) expects the move, a realistic outcome of Nvidia’s AI and gaming leadership, to unlock a $30 billion TAM for the chip designer.

The analyst says if Nvidia can establish a market share position in client PC CPUs, it will almost certainly come at the expense of Intel Corp INTC. The effect on Advanced Micro Devices, Inc’s AMD could potentially be even more problematic, as AMD’s share gains have been accomplished by levering, not challenging, the X86 architecture. 

While Nvidia’s success here will have no first-order effect on Tesla Inc TSLA, it would further solidify the chip designer’s leadership position in AI, thus incrementally challenging TSLA’s aspirations in AI. 

Separate reports claimed Samsung Electronics Co, Ltd SSNLF is also eying the Windows on ARM market with its own Exynos CPU.

The South Korean Nvidia rival is already developing ARM-based Exynos chipsets for smartphones and tablets.

For now, Samsung plans to re-enter the CPU market with its upcoming Exynos 2400 SoC, likely to power the Galaxy S24 flagship phone series. 

Separately, on October 23, the U.S. Government informed Nvidia that the additional export restrictions applicable to products having a “total processing performance” of 4800 or more and designed or marketed for data centers are effective immediately, impacting shipments of Nvidia’s A100, A800, H100, H800, and L40S products. 

These licensing requirements were originally to be effective after 30 days.

Given the strength of demand for its products worldwide, the company does not anticipate that the accelerated timing of the licensing requirements will have a near-term meaningful impact on its financial results. 

Price Action: NVDA shares traded lower by 0.40% at $428.03 on the last check Friday.