Why Nvidia Shares Are Ripping Higher

NVIDIA Corp (NASDAQ: NVDA) shares are trading higher Thursday following several reports the company is interested in using Intel Corp (NASDAQ: INTC) for chip manufacturing.

"They're interested in us using their foundries. We're very interested in exploring it," Nvidia CEO Jensen Huang said, according to a Reuters report.

Intel CEO Pat Gelsinger confirmed that the company is in discussions with Nvidia. Intel expanded its business to accommodate chips designed by others near the beginning of 2021. The company calls its expanded offering "Intel Foundry Services."

Nvidia shares are also seeing strength after chip manufacturing executives urged Congress to pass legislation that includes subsidies for the semiconductor industry. The legislation would include $52 billion in incentives for chipmakers.

During the company's investor day conference this week, Nvidia announced plans to accelerate artificial-intelligence technology development.

Nvidia is a designer of discrete graphics processing units that enhance the experience on computing platforms. The company's chips are used in a variety of end markets.

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NVDA 52-Week Range: $122.72 - $346.47

The stock was up 7.76% at $276.22 at time of publication.

Photo: courtesy of Nvidia.