Nvidia Says It Trusts Taiwan for Chip Supply
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Nvidia Says It Trusts Taiwan for Chip Supply

Yesterday, we found out that Nvidia (NASDAQ:NVDA) was likely to tap Intel (NASDAQ:INTC) for its chipmaking needs. Now, however, we’ve found out something that may either pare that plan back a bit or replace it altogether. Nvidia investors are surprisingly happy about this, sending share prices up nicely in Thursday afternoon’s trading.

A report from Reuters noted that Jensen Huang, Nvidia’s CEO, doesn’t have a problem with turning to Taiwan Semiconductor (NASDAQ:TSM). In fact, Huang feels “perfectly safe” turning to Taiwan for chips, despite the geopolitical tension between Taiwan and neighbor China. Huang detailed that, with a slate of supply chain discussions, there was little reason for concern. In fact, since Taiwan Semiconductor has a plant in Arizona, that would reduce any problem further still.

However, there’s someone who clearly doesn’t believe Huang’s upbeat projections about chip supply: Cathie Wood of ARK Invest. Wood has been previously spotted selling off Nvidia previously, and the only thing that’s changed in recent days is the speed at which she’s doing it. She’s stepped up her pace in recent days, with a Wednesday trade notification pointing out as much. She has all but missed the impressive run-up in Nvidia stock, instead choosing to focus on Tesla (NASDAQ:TSLA).

Cathie Wood may be out of Nvidia stock, but plenty of analysts are waiting to take her chair. With 32 Buy ratings and four Holds, Nvidia is considered a Strong Buy by analyst consensus. Further, it offers investors 13.29% upside potential thanks to its average price target of $449.92 per share.


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