Nvidia Shuts Down Reports of Custom Chip for China
Nvidia's stock rose by 0.5% in early premarket trading on Friday, recovering from a sharp drop in recent days ahead of its quarterly earnings report due next week.
The AI chipmaker denied reports that it plans to begin shipping a language processing unit (LPU) tailored for Chinese customers by year-end, saying it has no China-specific version of the product on its roadmap.
Nvidia's shares have been in the red for five consecutive sessions, losing nearly 4%, and are heading for their worst weekly performance in two months. Year to date, NVDA is up 16.4% compared to the 72% gains in the semiconductor benchmark iShares Semiconductor ETF (SOXX).
BMO Capital initiated coverage of Nvidia stock with an 'Outperform' rating and a $340 price target, implying a 57% upside from the stock's last close.