NVIDIA Corp NVDA shares are trading higher Tuesday. There are multiple things that could be driving the action, but most of the move appears to be related to the company's positioning in the AI revolution.
What To Know: Sam Altman, CEO of OpenAI, the company behind Microsoft Corp MSFT-backed ChatGPT, is testifying before Congress on Tuesday as AI continues to surge in popularity, taking the world by storm and sparking conversation around the potential dangers of its development.
In an exchange with lawmakers, Altman said he actually wishes people were using ChatGPT less because they "don't have enough GPUs."
Nvidia's H100 GPUs power large language models like ChatGPT. Nvidia said that its newest innovations speed up LLMs by 30X over the previous generation.
What Else: Berstein put out an update on the semiconductor space Tuesday, noting that although CPU drain continues, it's starting to look "less ugly." Furthermore, PC shipments still remain weak compared to the pandemic boom, but shipments are actually normalizing to pre-COVID levels, the analyst firm said. The industry appears to be on track to return to pre-COVID levels this year, Bernstein added.
Nvidia is set to report first-quarter financial results after the close on May 24. The company is expected to report earnings of 91 cents per share on quarterly revenue of $6.51 billion, according to estimates from Benzinga Pro.
See Also: AI Demand Skyrockets: A Deep Dive into Semiconductor Stocks AMD, NVDA, and INTC by Morgan Stanley
NVDA Price Action: Nvidia shares have more than doubled year-to-date.
The stock was up 2.51% at $296.78 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Nvidia.
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