Why Shares of Nvidia Are Rising to End the Week

Core Insights - Nvidia's stock saw a nearly 4.5% increase in the last half hour of trading on Friday, attributed to a market rebound and positive updates from suppliers [1] Group 1: AI Demand and Supplier Insights - Foxconn reported a fourth-quarter net income of $1.41 billion, missing analyst estimates and declining 13% year over year, but expects AI server demand to more than double in Q1 2024 [2] - Foxconn's Chairman stated that they have not observed a slowdown in demand from cloud service providers (CSP), despite market rumors suggesting a peak in demand this year [2] - AI server revenue is projected to constitute over half of Foxconn's total server revenue by 2025, with increased production for Nvidia [3] Group 2: Supply Chain and Tariff Considerations - Foxconn has improved its supply chain resilience over the past years, mitigating potential impacts from tariff factors [4] - The ongoing trade war and uncertainties related to export controls may continue to affect Nvidia [5] Group 3: Valuation Insights - Nvidia's stock is currently trading at just under 27 times forward earnings, presenting a more attractive valuation compared to previous levels above 50 times forward earnings, especially if AI demand remains strong [6]