NVIDIA Corp (NVDA)

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Nvidia Shares Up 11% This Week On New Supercomputing Chip
By: MarketBeat | April 16, 2021

• Shares of graphics chip maker Nvidia (NASDAQ: NVDA) jumped 11% this week after the company announced its new Grace chip created specifically for artificial intelligence data centers.
The company said the new chip would bring 10 times the performance of the fastest servers now available on complex AI networks and other high-performance applications.

The new chip is based on designs from Arm, a U.K. chipmaker that Nvidia is attempting to purchase in a deal valued at around $40 billion. That transaction has run into regulatory hurdles, but there’s no indication that would halt the development of the Grace chip.

Nvidia chips have been used for lifelike virtualization in video games. As a specialized producer, its revenue lags that of Intel (NASDAQ: INTC), whose chips are used in a wider array of electronics gear.

However, in a stroke of luck for Nvidia, the chips it makes can also be used for applications such as machine learning, mining of cryptocurrencies and self-driving vehicles, all hot trends that are sure to grow.

Shares are up 414% since the end of 2018, and Nvidia’s market capitalization of $395.90 billion is higher than Intel’s market cap of $263.97 billion.

Not only that, but Nvidia’s earnings and revenue grew at a faster clip recently. While Intel’s top- and bottom-line growth slowed in the past two quarters, Nvidia’s earnings grew at rates between 63% and 136% in the past five quarters. Sales grew between 39% and 61% during that time, with growth accelerating in the past four quarters...

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