What's Going On With Nvidia Stock Wednesday?

Nvidia Corp NVDA stock traded lower Wednesday in sync with the broader ETF Invesco QQQ Trust, Series 1 QQQ.

The chipmaker launched a Grace Hopper Superchip, a combination of graphics chip and processor that relies on high-bandwidth memory 3, or HBM3e.

CEO Jensen Huang said that the Superchip, GH200, will go into production in the second quarter of 2024 at the Siggraph conference in Los Angeles, Bloomberg reports.

Also Read: US Credit Rating Downgrades

Advanced Micro Devices, Inc's AMD rival offerings, two versions of its MI300 design, will launch in the fourth quarter of 2023. Meanwhile, AMD's components will work with another version of HBM3 memory.

Huang said an $8 million investment in his new technology could replace the $100 million facility built with older equipment and use 20 times less power.

Nvidia shares have more than tripled this year, reaching a valuation of $1.1 trillion.

However, U.S. rating downgrades are weighing on the broader indexes. 

Super Micro Computer, Inc's SMCI selloff following the fourth-quarter earnings beat also triggered bearish sentiments. 

On Tuesday, SMCI reported quarterly earnings of $3.51 per share, which beat the analyst consensus estimate of $2.57. The company reported quarterly sales of $2.18 billion, which beat the analyst consensus estimate of $1.90 billion.

Price Action: NVDA shares traded lower by 4.83% at $425.01 on the last check Wednesday.