Nvidia stock has fallen back after pushing past $700 as the chip maker’s rally gets hit by profit taking despite striking a deal with Cisco Systems to embed its hardware in data-center equipment.
Nvidia
shares were down 2.7% at $ 674.77 in early trading, reversing gains that it had sent it above $700 for the first time in the premarket.
Nvidia stock closed up 4.8% on Monday at $693.32, setting a new record closing high. The stock was boosted on the day by positive opinions from analysts at Goldman Sachs and Raymond James, who back Nvidia to continue its strong run.
The chip maker said Tuesday that it would partner with networking company
Cisco Systems
to sell infrastructure for data centers. Nvidia’s graphics processing units—the favored choice for training artificial-intelligence systems—will be included with Cisco’s server computers.
“Working closely with Cisco, we’re making it easier than ever for enterprises to obtain the infrastructure they need to benefit from AI, the most powerful technology force of our lifetime,” said Nvidia CEO Jensen Huang.
Nvidia stock was dropping alongside fellow chip makers on Tuesday.
Advanced Micro Devices
was down 4% in early trading and
Intel
was down 0.4%.
“From a competitive standpoint, although AMD is making good progress with its MI300 platform, we believe Nvidia will remain as the industry gold standard for the foreseeable future given its robust hardware and software offerings and, importantly, the pace at which it continues to innovate,” Goldman analyst Toshiya Hari wrote in a research note on Monday.
Nvidia stock has risen 30% over the past month through Monday’s close. That compares with a 3.9% rise for the
S&P 500
and a 5% increase for the
Nasdaq Composite
Index over the same period.
Write to Adam Clark at [email protected]
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