Why Nvidia Stock Was Surging Today
Shares of Nvidia (NASDAQ: NVDA) were up 4.9% as of 12:29 p.m. ET on Tuesday following reports that the U.S. is planning to put further restrictions on exports of high-powered semiconductors to China. Recently, the U.S. government placed restrictions on chip exports used for artificial intelligence applications.
Tech stocks were having a good day across the board, with bond yields pulling back, making growth stocks more attractive to market traders. It was a welcome reprieve following a brutal 55% slide in Nvidia shares year to date, but the company still faces challenges in a weak PC market.
Higher inflation and interest rates are taking a toll on consumer spending. The International Data Corporation expects PC shipments to decrease by 13% in 2022, with further contraction expected in 2023. However, 2022 demand is still expected to remain higher than pre-pandemic levels.
Source Fool.com
