What's Going On With Nvidia Stock On Friday?

Zinger Key Points
  • Nvidia stock rises as CEO Jensen Huang prepares to speak at Computex, highlighting AI advancements and industry leadership.
  • U.S. embargo on AI chip exports to the Middle East affects Nvidia and AMD; national security cited as the reason.

Nvidia Corp NVDA stock is trading in a volatile session on Friday as it continues to lead the artificial intelligence race with its advanced chips.

CEO Jensen Huang prepares to deliver his opening speech on Sunday at Taiwan’s Computex event.

Global chip company CEOs, including Nvidia, Advanced Micro Devices Inc AMD, and Intel Corp INTC, have gathered at the event to discuss the artificial intelligence prospects in the hometown of Taiwan Semiconductor Manufacturing Co TSM.

Meanwhile, the U.S. has issued a temporary embargo on exporting AI chips to the Middle East, citing national security concerns.

The U.S. government is undergoing a review of high-volume sales to the United Arab Emirates and Saudi Arabia.

A year ago, the U.S. issued similar restrictions on China. The embargoes are taking a toll on chip companies, including Nvidia and AMD, which have sizable exposure to countries.

CNBC’s Jim Cramer expects Nvidia to beat Microsoft Corp’s MSFT market capitalization backed by AI, cloud computing, and data center moats.

While AMD according to Cramer has a lot of catch up to reach the levels of Nvidia.

Analysts flagged Nvidia as the key AI beneficiary, backed by the Blackwell production pipeline and U.S. Big Tech customers. The company is also looking to resolve its supply constraints regarding chip-on-wafer-on-substrate (CoWoS) packaging.

Nvidia stock gained over 192% in the last 12 months. Investors can gain exposure to the stock via Grizzle Growth ETF DARP and SoFi Select 500 ETF SFY.

Price Action: At the last check on Friday, NVDA shares were trading lower by 0.63% at $1,098.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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