Nvidia stock climbing despite reports of new Huawei AI chip

Shares of Nvidia (NVDA) are climbing despite a new threat from overseas technology rival Huawei. According to a report in the Wall Street Journal, the Chinese chip company is close to introducing a new AI chip for AI use that could challenge Nvidia's place in the Chinese market.

Market Domination hosts Josh Schafer and Julie Hyman report more on the story and some of the headwinds Nvidia faces in China, particularly when it comes to regulations.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Melanie Riehl

Video Transcript

The trending tickers here on Yahoo Finance.

First of we're watching NVIDIA as we talked about earlier.

The stock is climbing today despite a new threat from overseas rival Huawei.

According to a Wall Street Journal report, the Chinese chip maker close to introducing a new chip for A I use, in theory that could challenge NVIDIA's place in the Chinese market.

Huawei aims to start shipping that chip as soon as October.

On Monday, NVIDIA was dubbed a top rebound stock remembered by Bank of America, and it is still rebounding.

And it doesn't seem like there's a lot of concern over this Huawei chip here.

I mean, after all, NVIDIA is already not selling its most advanced chips, China.

So yes, it's it's already priced in, right?

We've talked a lot.

We've talked a lot about the headwinds that NVIDIA faces in China and the flat out regulation problems that they have there right and their inability to sell chips that they were selling there.

And the stock has fallen on that in the past.

The stock is in a 30% trod down that has included headlines about that, so I just don't know when you read this report this morning, how much more investors learned other than, of course, someone else is coming into the market.

But if they weren't even if that's not even the key growth growth driver that someone's pricing in right now, how much does it matter?

I don't know.

It seems like at least today the market doesn't care, right.

There's not anything that's that new in this.

I don't think this was unexpected.

The other thing I would remind people of is just how broad the optimism still is around NVIDIA.

Yes, we've had the Tech draw down.

Yes, there are concerns about delays in their chips.

Yes, there's concern about end market demand for a I.

And yet 89% of the the analysts who cover the stock still rated to buy and like it is, it is difficult to find anyone we talk to on a daily basis.

Who is not a bull on a video debate has been there over the last month to call top, or at least call near term top as the stock drew down and no one has wanted to do it going into earnings.

Instead, it's a buy.

The dip sentiment So it says something about how people are feeling about the stock.

They've been burned.

Maybe when they did that in the past, maybe that's part of the reason why.