Why Nvidia Stock Popped Again Today
For the fourth day in a row, shares of semiconductors specialist Nvidia (NASDAQ: NVDA) marched higher Tuesday, rising 2.6% through 12:15 p.m. EDT as bad news about the global semiconductor shortage continues to be interpreted as good news for Nvidia.
On Monday, contract semiconductors manufacturer GlobalFoundries (NASDAQ: GFS) confirmed the results of its successful initial public offering, in which the company floated 55 million shares at an offer price of $47 per share. Although GlobalFoundries enjoyed no immediate "pop" from the offering (its shares actually closed the day down $0.20), those shares have since perked back up and are now trading about $56 a share.
Part of the reason GlobalFoundries stock is so popular -- and I suspect, part of the reason Nvidia's shares have been rising ever since the IPO -- is because over the weekend, GlobalFoundries CEO Tom Caulfield told CNBC that his company is sold out of semiconductor chip production capacity through 2023 -- and furthermore, that "for the better part of the next five to 10 years, we're going to be chasing supply not demand."
Source Fool.com
