Nvidia hit a record high on Monday as the AI chipmaker made an announcement at CES and investors digested a new report on its business with China. Nvidia's stock price rose more than 4% to more than $514 per share, with the stock gaining momentum toward a record closing price. Nvidia's current high was reached on November 20th, at $504.09 per share. Including Monday's intraday gain, the stock is up more than 27% from its recent low on Oct. 26. The S&P 500 is up about 14% in the same time frame. “I still think the company is very undervalued,” Jim Cramer said Monday, predicting that NVIDIA's stock price will be at the end of 2023, even though the stock more than tripled last year on AI optimism. Alluded to the fact that it was cheaper than it was 12 months ago. Nvidia was trading at about 24 times forward earnings on Monday, compared with an average of 39 times over the past five years, according to FactSet data. The club cut Nvidia and several other 2023 high-profile companies last week to preserve profits. However, we maintain our long-term belief in the leading AI chip maker, which is up 239% in 2023. Information technology was the best performer on the S&P 500 index on Monday, rising 1.8% and contributing to the overall index's 0.65% gain. . The strength in tech stocks came as the yield on the benchmark 10-year U.S. Treasury note fell below the 4% level, which is closely watched as a psychological level. Nvidia plans to begin mass production of AI chips for Chinese customers that comply with the U.S. government's revised export rules for AI technology, Reuters reported on Monday, citing sources. Tighter regulations that took effect in October temporarily limited NVIDIA's ability to sell coveted AI chips to key markets for the second time in recent years. After the U.S. government introduced export controls for AI technology in October 2022, Nvidia will redesign its data center chips to meet performance thresholds and process orders for China-based customers. can now be restarted. But some Chinese tech giants, including Alibaba, are less enthusiastic about Nvidia's second attempt to make less powerful AI chips that comply with U.S. rules, The Wall Street Journal reported on Sunday. , citing a person familiar with the matter. Alibaba, known for its e-commerce and cloud computing platform, and Tencent, the owner of WeChat, have announced orders for AI chips will be subdued in 2024 compared to previous plans for processors that are now illegal. The Journal reported that it has told NVIDIA that it intends to reduce the number. The newspaper reported that tech companies are directing some of their orders to Chinese companies such as Huawei and their own custom processors, with Jim downplaying the impact of the Journal's report and saying that tech companies are directing some of their orders to Chinese companies such as Huawei and their own custom processors. The report suggests the chip is still better than alternatives. “Wait a minute, they'll take anything away from Nvidia,” he said, adding, “I think the Chinese companies need to understand that this is good for them.” Sales to Chinese customers have so far accounted for his 20% to his 25% of Nvidia's data center revenue. Nvidia said strong demand for its chips in other parts of the world will offset lost sales in China in the near future. Losing access to the Chinese market in the long term would have a negative impact on the U.S. technology market, the company said. While we have been encouraged by NVIDIA's apparently strong relationship with the U.S. government, we cautioned against assuming that the company's China revenues will return to historic levels any time soon. Meanwhile, his Nvidia keynote at the CES conference began at 11 a.m. ET on Monday, and was a potential source of excitement for investors. The company announced new graphics processing units (GPUs) for personal computers and professional workstations. Nvidia says in his press release that the GPU is designed to “unlock the full potential of generated AI on the PC.” Also, major laptop manufacturers such as Dell and HP will launch devices with the new GPUs, Nvidia said. Nvidia's finance chief Colette Kress will also attend a chat hosted by JPMorgan at 11 a.m. ET Tuesday. (Jim Cramer's Charitable Trust is long NVDA. See here for a complete list of stocks.) As a subscriber to Jim Cramer's CNBC Investment Club, you will receive trade alerts before Jim makes a trade. I will receive it. 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Visitors visit the NVIDIA booth at the 2023 Hangzhou Apsara Conference in Hangzhou, Zhejiang Province, China, October 31, 2023. (Photo credit: Costfoto/NurPhoto, Getty Images)
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Nvidia Shares hit new highs on Monday as the AI chip maker announced at CES and investors digested a new report on its business with China.
