Nvidia shares up on Wednesday as traders await Fed rate announcement and Intel launches Arc GPU in China

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NVDA Stock Intrinsic Value – Nvidia ($NASDAQ:NVDA) shares led the chip sector higher on Wednesday as traders awaited the latest interest rate movement from the Federal Reserve and Intel announced that its Arc GPU would be available in China. The semiconductor sector has been one of the best-performing groups this year, as investors bet on continued strong demand for chips used in everything from automobiles to artificial intelligence. The company is benefiting from strong demand for its gaming GPUs and data center chips used for artificial intelligence. Investors are eagerly awaiting the Fed’s latest decision on interest rates, which could come as early as Thursday. A rate cut would be positive for the chip sector, as it would make borrowing cheaper and could help spur demand. Intel’s announcement that its Arc GPU will be available in China is also positive news for the chip sector.

Market Reaction

On Wednesday, NVIDIA stock opened at $161.0 and closed at $165.3, up by 4.4% from prior closing price of 158.4. NVIDIA stock has been on a steady incline in the past few weeks, and Wednesday’s 4.4% increase marks a continuation of this trend. Some analysts believe that NVIDIA’s strong performance is due to increasing demand for its GPUs in the gaming and cryptocurrency mining industries.

VI Analysis – NVDA Stock Intrinsic Value

Company’s fundamentals are a key indicator of its long term potential. The VI app makes it easy to analyze a company’s fundamentals and identify undervalued stocks. Based on NVIDIA’s fundamentals, the company is currently undervalued by 20.07%. This presents a good opportunity to buy the stock at its current price of $170.86. NVDA Stock Intrinsic Value is at $213.40.

Summary

The stock price rose 4.4% following the news, and analysts believe that Nvidia is a strong investment in the current market. “With solid execution and a strong product pipeline, we believe Nvidia is well-positioned to continue winning market share and delivering strong growth,” Evercore ISI analyst C.J. Muse said in a note to clients. Nvidia’s products are used in a wide range of applications, from gaming and artificial intelligence to self-driving cars and data centers. The company has been on a roll lately, reporting better-than-expected quarterly results and raising its outlook for the rest of the year. “We believe Nvidia is well-positioned to capitalize on secular growth trends in gaming, AI, and autonomous vehicles,” Piper Jaffray analyst Harsh Kumar said in a note to clients.