Nvidia Corp NVDA and peer chipmaking stocks are trading lower Thursday in sympathy with contract chipmaker Taiwan Semiconductor Manufacturing Company Ltd's TSM bleak second-quarter results.
TSMC's second-quarter revenue declined by 13.7% year-on-year to $15.68 billion, beating the consensus of $15.49 billion. It projected a 10% fall in sales in FY23 versus previous guidance for a single-digit decline.
TSMC disclosed postponing production at a planned facility in Arizona from late 2024 until 2025.
Reportedly Samsung Electronics Co, Ltd SSNLF is eying Nvidia orders as TSMC packaging capacity remains tight.
As GPUs become essential components for artificial intelligence (AI) computing, orders for Nvidia GPUs are also garnering attention, Digitimes reports.
Meanwhile, U.S. chipmaking companies are negotiating with the U.S. government over a softer stance on its China semiconductor policy.
Wolfe Research analyst Chris Caso initiated coverage on Nvidia with an Outperform rating and a price target of $570.
Barclays analyst Blayne Curtis maintained Nvidia with an Overweight and raised the price target from $500 to $600.
Price Action: NVDA shares traded lower by 1.17% at $465.35 on the last check Thursday.
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