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What's Going On With AMD And Nvidia Shares

Benzinga · 11/15/2022 10:57

Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA) shares are seeing strength Tuesday morning following key economic data. Both stocks are trading higher in sympathy with the broader market after October PPI data showed a smaller-than-expected rise in wholesale prices. This has helped ease some inflation concerns and has raised hopes of softer Fed policy.

See Also: Apple Offers Rare Discount On MacBooks To Boost Holiday Quarter Sales: Are You Eligible?

Additionally on Tuesday morning, the U.S. 10-year note fell to the 3.79%-level, marking a new 1-month low. When interest rates otherwise rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.

What Happened?

On the economic front, the Labor Department's wholesale price inflation report for October showed that the headline producer price index rose 0.2% from the previous month compared to expectations for a 0.4% increase. The year-over-year rate cooled off to 8% from 8.3%. 

This data can be viewed as important given producer prices could be seen as a leading indicator for consumer prices.

Per the Bureau of Labor Statistics, in October, the rise in the index for final demand can be attributed to a 0.6% advance in prices for final demand goods. In contrast, the index for final demand services decreased 0.1 percent. Prices for final demand less foods, energy, and trade services advanced 0.2% in October following a 0.3% rise in September. For the 12 months ended in October, the index for final demand less foods, energy, and trade services increased 5.4%.

According to data from Benzinga Pro

AMD is trading higher by 4.66% to $76.95

NVDA is higher by 3.02% to $167.87