Market News

What’s Driving Nvidia’s (NVDA) Stock Surge in Light of Strategic AI Chip Move in India What’s Driving Nvidia’s (NVDA) Stock Surge in Light of Strategic AI Chip Move in India

Nvidia Strikes Gold in India’s AI Chip Market

Nvidia Corp NVDA is set to make a significant dent in India’s AI chip market through a colossal $500 million deal with Yotta, an Indian data center operator.

This deal, boosting Nvidia’s total orders from Yotta to $1 billion, is a game-changer, propelling Yotta’s AI cloud services to new heights.

The CEO of Yotta, Sunil Gupta, revealed that the order comprises nearly 16,000 Nvidia H100 and GH200 AI chips, with delivery scheduled by March 2025, as per a report by Reuters.

Also Read: Intel’s Automotive Gambit: New AI Chips to Power Future Cars, Taking On Nvidia and Qualcomm

Nvidia’s foothold in the Indian market gets a substantial boost from its AI collaborations with major Indian conglomerates like Reliance Industries and Tata Group, focusing on cloud infrastructure, language models, and generative AI applications.

Strategic Implications and Indian Market Dynamics

The demand for storage and processing in India has magnetized global tech giants like Microsoft Corp MSFT, Alphabet Inc GOOG, Google GOOGL, and Amazon.Com Inc AMZN to expand their cloud and data center investments in the region.

The increasing demand for storage and processing in India has attracted global tech giants like Microsoft Corp MSFT, Alphabet Inc Google, and Amazon.Com Inc to expand their cloud and data center investments in the region.

Yotta’s growing investment in AI infrastructure aligns with India’s ambitious AI goals, which are estimated to reach $14 billion by 2030.

See also  Market Rally: Smith & Wesson Brands Leads as Big Stocks Surge Market Rally: Smith & Wesson Brands Leads as Big Stocks Surge

Implications for Nvidia Amid US Export Restrictions

The recent US export restrictions affecting chip sales to China and other countries have created hurdles for Nvidia. Thus, the company is striving to tap into new markets such as India to fortify its sales.

The embargo poses a significant challenge for Nvidia, with Chinese cloud companies currently sourcing about 80% of high-end AI chips from the company, making them a vital market.

Nvidia’s presence in India’s fast-growing AI market is a strategic win, especially given the company’s challenges in China due to US export restrictions. With China representing a substantial market for chip designers, the move to India could prove to be a crucial step for the company’s growth.

Stock Performance

Nvidia’s stock displayed bullish behavior, trading higher by 1.01% at $548.99 on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Wikimedia Commons