Nvidia share price falls big, chipmaker mulls shocking move

Nvidia share prices on Monday tanked as chip stocks were also sold off. The Santa Clara, California based chipmaker's stocks were down by 1.4 per cent. The all-crucial gauge for semiconductor stocks shed 1.9 per cent.

Meanwhile, Nvidia was planning to sell a technology that will tie chips together to speed up the chip-to-chip communication needed to build and deploy artificial intelligence tools, it said on Monday.

Nvidia launched a new version of its NVLink tech called NVLink Fusion on Monday that it will sell to other chip designers to help build powerful custom AI systems with multiple chips linked together.


Nvidia has been designing central processing units that would run Microsoft's Windows operating system and use technology from Arm Holdings, Reuters has previously reported.

Nvidia also launched a desktop version of its AI chips, called DGX Spark, targeting AI researchers. On Monday, Huang said the computer was in full production and would be ready in a "few weeks".

AMD will sell the server-manufacturing business of recently acquired ZT Systems to Sanmina in a $3 billion deal, making the U.S.-based contract manufacturer its partner for building AI hardware as the chip designer works to onshore supply chains.

The deal, announced on Monday, highlights AMD's efforts to produce more of its chips on American soil amid global trade tensions and U.S. President Donald Trump's efforts to expand domestic semiconductor manufacturing.

Under Monday's agreement, AMD will retain ZT's AI systems design business — a key asset amid escalating computing requirements that require mapping out thousands of chips strung together in clusters.

ZT's design unit could be an important portfolio item for AMD, which has been struggling to compete against Nvidia in the booming market for AI processors.

FAQs

Q1. What are desktop version of Nvidia's AI chips?
A1. Nvidia also launched a desktop version of its AI chips, called DGX Spark, targeting AI researchers.

Q2. Is Nvidia working for Microsoft's Windows?
A2. Nvidia has been designing central processing units that would run Microsoft's Windows operating system and use technology from Arm Holdings, Reuters has previously reported.