By Dhirendra Tripathi
Investing.com – Nvidia (NASDAQ:NVDA) rose more than 2% while Intel (NASDAQ:INTC) fell almost 1% as traders continue pivoting toward the former.
Nvidia’s extended gains following its announcement Monday that it will foray into making a new central processing chip, or CPU, for use in data centers. Grace, its CPU, would compete for data-center slots where chips from Intel and Advanced Micro Devices hold sway. AMD (NASDAQ:AMD) was bucking the trend though with its near 1% gains.
As demand for work-from-home infrastructure rises and people use more devices for connectivity to make their lives smoother, data centers are booming, creating demand for everything that goes into them – from air conditioning products to fiber to chips.
The graphics chipmaker’s rise was also fueled by another announcement it made Monday that revenue for the quarter ending May 2 is tracking above the 72% growth forecast given at its earnings call in February.
These are the best of times for makers of chips, microprocessors and semiconductors – whether their product finds use in laptops or mobiles or cars. There is an acute shortage of most kinds of these critical inputs world over and companies like Intel, Nvidia and NXP (NASDAQ:NXPI) have laid out big expenditure plans to enhance their capacities and also foray into new production lines.