Nvidia Corp (NASDAQ:NVDA) stock is trading lower Wednesday along with the broader market after Fitch on Tuesday downgraded the U.S. credit rating to AA+ from AAA, citing fiscal deterioration over the next three years and repeated down-the-wire debt ceiling negotiations.
With the downgrade, it becomes the second central rating agency after Standard & Poor’s to strip the U.S. of its triple-A rating, Reuters reports.
Meanwhile, Advanced Micro Devices, Inc (NASDAQ:AMD) reported its second-quarter beat and shared its ramp-up plans for its artificial intelligence chips on Tuesday.
Also Read: Everything You Need To Know About AMD’s AI Strategy
AMD reported non-GAAP earnings per share of 58 cents, ahead of the consensus estimate of 52 cents per share. The company’s revenue fell 17.56% year-over-year but rose 0.94% sequentially to $5.36 billion versus the Street consensus of $4.81 billion.
AMD CEO Lisa Su shared plans to ramp up production of its flagship MI300 AI chips in Q4, ready to compete against Nvidia’s advanced H100 chips.
AMD is also weighing a strategy similar to Nvidia with its MI300 and older MI250 chips to comply with U.S.’s China policy.
So far, analysts have claimed Nvidia as the biggest beneficiary of the AI game.
However, untapped demand in the face of Microsoft Corp (NASDAQ:MSFT) and Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google’s aggressive spending on data centers and Apple Inc’s (NASDAQ:AAPL) launch of new iPhones could fuel potential for AMD.
The broader index ETFs, including SPDR S&P 500 (NYSE:SPY) and Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), are trading lower by close to 1% Wednesday.
Price Actions: NVDA shares traded lower by 4.42% at $444.51 on the last check Wednesday.
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