Nvidia Stock Extends Rally On AI Chips For China Optimism

Nvidia leads in artificial intelligence (AI) chips, but competition is rising. Key customer Microsoft may be working on its own AI chip. OpenAI, whose backers include Microsoft, reportedly is exploring its own AI chips as well.

On Nov. 9, unconfirmed reports said that the chipmaker is set to announce a new series of AI chips for customers in China. The new Nvidia chips are reportedly designed to comply with the latest U.S. government export restrictions. The news cheered investors, because the curbs were seen leading to a possible $5 billion in order cancellations for Nvidia.

Companies like Nvidia and Microsoft tap the emerging market for generative AI. Generative AI can create content, including written articles, from simple phrases by analyzing vast amounts of data. It can also write programming code.

The AI chip leader plans to report earnings for its fiscal third quarter on Nov. 21. For those looking for the top large-cap stocks to buy now, here's a dive into NVDA. $NVIDIA(NVDA.US)$ $Microsoft(MSFT.US)$ $Meta Platforms(META.US)$