Nvidia stock climbed toward a buy point Wednesday as chip stocks rallied behind a strong Dell earnings report. The gains came alongside news of a $3.5 billion Nvidia investment in MediaTek and reported talks to acquire AI startup Hugging Face for about $14 billion.
Nvidia stock rose nearly 4% to 225.60, closing in on a buy point of 227.92 Wednesday, as chip stocks rallied following a bullish quarterly report from Dell Technologies.
Dell's Report Lifts Chip Stocks
Dell's beat-and-raise report landed late Tuesday and signaled continued momentum in spending on AI data centers. Nvidia had already flirted with the buy point last week after reporting upbeat fiscal second-quarter results and guidance. The stock is forming a cup-with-handle base, with the buy point identified by IBD MarketSurge charts.
Nvidia Deepens AI Partnerships
Nvidia also is backing the AI buildout through investments in customers and partners. On Monday it invested $3.5 billion in convertible bonds issued by MediaTek, part of an expanded collaboration to build the next generations of AI computing platforms.
The company is reportedly in advanced talks to acquire AI startup Hugging Face in a deal that may total about $14 billion, Bloomberg reported Wednesday.
SOX Index Advances Amid Rally
The Philadelphia semiconductor index, known as SOX, advanced 0.3% on Wednesday. The index tracks the 30 largest U.S.-traded chip stocks, including Nvidia, and is scheduled for its annual reconstitution later this month.
Top gainers on the SOX included Skyworks Solutions, Qorvo and NXP Semiconductors.
Source: Investor's Business Daily
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