Meta Platforms Just Threw Nvidia a Huge Lifeline
The semiconductor sector is in a sour mood as recession fears have mounted. Last week, news emerged that high-flying graphics chipmaker Nvidia (NASDAQ: NVDA) could see growth come to a halt in its large gaming segment.
Economies are opening and inflation is eating into consumer purchasing power, which has depressed demand for PCs, phones, and video games. Meanwhile, the recent cryptocurrency crash has led to a glut of used Nvidia graphics chips, which are used in crytpo mining, as miners have dumped them into distributor channels. No wonder it was reported last week that Nvidia has asked foundry partner Taiwan Semiconductor Manufacturing to delay production of its new RTX GeForce 40 chip this year. TSM refused, which means Nvidia may have to take on huge amounts of inventory in 2022.
But while the near-term outlook for gaming GPUs is dour, Nvidia's data center segment just got good news from an unlikely source.
Source Fool.com
