Microsoft is to scale back its ambitions for AI chips. The action is in response to overcoming delays. This is according to The Information.
Although Microsoft wants to reduce reliance on Nvidia for AI computing, it seems like that ambition is harder than they expected. That should be a victory for Nvidia.
Shares of Nvidia are currently up $3.66 or 2.37%. The high price reached $157.60. The current price is trading at $156.96. Meanwhile Microsoft shares are trading unchanged at $492.06.
The all-time high price for Nvidia was reached on Friday at $158.71. The low price before the year was reached on April 7 at $86.62. Since then the price is up some 83%.
Meanwhile, the scaling back has negative implications for Marvell. Marvell was hired by Microsoft to work on some of the chip design.
Shares of Marvell are currently up $0.90 or 1.04% on the day at $77.18 but off its high price of $79.09. Marvell shares are down -30.29% for the year and well off its all-time high price of $127.48 reached on January 23.
Looking at the daily chart, the price trades above its 100-day moving average at $70.64, but below its 200-day moving average at $83.29.
This article was written by Greg Michalowski at www.forexlive.com.