By Elsa Ohlen

Nvidia stock rose modestly early Friday as investors digested a raft of mixed news over the past few days.

Shares were up 0.1% to $147.34 in premarket trading. It closed almost flat Thursday after starting the day in the red as a fresh outlook from supplier SK Hynix cast doubt over future demand for its products.

Among other chip makers, Broadcom, Arm, and Micron also initially fell after SK Hynix's announcement but pared some of those losses over the day.

"SK Hynix's results weren't as stellar as some had hoped. On one level the results weren't too bad, but given the hype around AI, the bar for a positive market reaction is so high that even beating expectations can lead to a pullback on the grounds that they didn't beat by even more," Deutsche Bank analysts said Friday.

Ultimately, that didn't hamper Nvidia's good start to the year for more than a few hours. Shares are up 9.6% so far in 2025.

The chip maker also had a good start to Donald Trump's second presidency and shares are up 6.9% since the close of last week. Stock in Nvidia -- along with other companies benefiting from the AI trade -- has risen amid optimism around the launch of the Stargate Project.

The scheme is a partnership between the White House, OpenAI, Oracle, and SoftBank that will invest up to $500 billion in AI infrastructure in the U.S. over the next four years -- and a large part of that may be spent on Nvidia' gear's products.

Write to Elsa Ohlen at elsa.ohlen@barrons.com

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January 24, 2025 05:21 ET (10:21 GMT)

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