Shares of Nvidia Corp. surged 2.7% in morning trading on Thursday, reaching a two-month high, following reports of the semiconductor maker’s launch of microchips tailored specifically for the Chinese market.
U.S. Government Blocks High-End Chip Sales to China
Nvidia’s strategic move comes after the U.S. government imposed restrictions on the company, preventing it from selling high-end chips to China. This development underscores Nvidia’s determination to explore new avenues and tap into the vast potential of the Chinese market.
Impressive Streak of Success
The stock is currently on track for its seventh consecutive gain, which would mark the longest winning streak since the period ending March 23. As of now, Nvidia’s stock has soared an impressive 17.3% throughout this successful run, trailing by only 3.1% from its all-time high closing price of $493.55 on August 31.
Upcoming Quarter Earnings
In related news, Nvidia is scheduled to announce its third-quarter financial results on November 21, following the closure of Eastern markets at 4 p.m. The company has consistently exceeded earnings-per-share expectations for the last three quarters and has outperformed revenue forecasts in an impressive 18 out of the past 20 quarters, according to FactSet data.
A Stellar Year for Nvidia
Nvidia’s stock has skyrocketed by a remarkable 227.3% year-to-date, making it the standout performer in the S&P 500 index this year. By comparison, the PHLX Semiconductor Index has surged by 39% in the same period, while the broader S&P 500 has advanced by 14.2%.
Nvidia continues to flourish, defying challenges and pushing boundaries in the semiconductor industry. With the launch of microchips tailored for Chinese consumers and its impressive track record of surpassing expectations, the company seems poised for further growth and success.