Why Nvidia Stock Dropped This Morning
Shares of semiconductor manufacturer Nvidia (NASDAQ: NVDA) -- a supplier of chips for everything from playing video games to mining cryptocurrency, to performing artificial intelligence tasks -- slipped 2% as of 11:05 a.m. EDT Monday in response to rumors that rival chipmaker Intel (NASDAQ: INTC) could be mounting a challenge to Nvidia's dominance in graphic cards.
As TechRadar reported this morning, a "leaked slide" from a presentation apparently authored by Intel describes the latter's plans to release "a new Intel Arc Alchemist GPU ... lining up in performance terms with [Nvidia's] RTX 3070" graphics processor -- and potentially at a lower price.
Nvidia describes its GeForce RTX 3070 family as "the ultimate play" in graphics processors, suitable for "the most demanding games" -- and priced starting at $499. According to the slides that TechRadar has reviewed, however, the new Intel chip -- if it's for real -- would compete with the Nvidia chip on performance, but cost only "in the $300 to $499 range for the top-end model."
Source Fool.com