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NVDA Stock Under Close Watch as Nvidia Recovers From a Cyberattack

It appears that graphics processing unit (GPU) manufacturer Nvidia (NASDAQ:NVDA) is the victim of a cyberattack this week. News is making the rounds about significant portions of the company’s business being compromised. While investors…

It appears that graphics processing unit (GPU) manufacturer Nvidia (NASDAQ:NVDA) is the victim of a cyberattack this week. News is making the rounds about significant portions of the company’s business being compromised. While investors await further details, they are keeping NVDA stock under close watch.

Source: Konstantin Savusia / Shutterstock.com

According to reports by The Telegraph, the microchip company came under fire from a cyberattack earlier in the week, though reports are only now surfacing. The company says that it has been internally dealing with the matter for the last two days.

Specifically, the company has been dealing with outages across its email system and developer tools. The company says it does believe it is the victim of a malicious attack. However, it has not yet indicated a potential culprit. The company is not making clear whether or not data has been stolen or erased in the wake of the attack.

Cybersecurity experts who commented on the matter say Nvidia could very well have deliberately cut off its own email and developer tools; such an act would prevent malicious actors from accessing more private data and material.

NVDA Stock Becomes a Stock to Watch in the Aftermath of Cyberattack

This news comes at a very interesting time, leaving many to theorize on the source of the Nvidia cyberattack. NVDA stock has a close relation to recent sanctions against Russia. As such, many think there’s reason to believe the country is behind the hack in some way.

Indeed, microprocessor companies like Nvidia have become important bargaining chips in the Russo-Ukrainian conflict. On Thursday morning, Russia invaded Ukraine — an event that many nations tried to prevent, but one that seemed all but inevitable. In the days prior to the invasion, the U.S. and a slew of other nations promised sanctions against Russia were it to invade. One important piece of these sanctions is a chip blockade. This piece of information is central to the unconfirmed theories surrounding the attack.

Microprocessors are already in high demand; thousands of electronics, including computer systems in cars and home appliances contain the units. Already in short supply thanks to supply chain issues that have plagued the world in recent years, the embargo could be quite damaging to Russia. Even more so, cutting off the country from GPUs — which require chips to operate — would greatly hinder its crypto-mining operation. Russian President Vladimir Putin recently voiced support for the crypto-mining industry within the country.

Once again, any ideas about the actor behind the Nvidia hack this week are entirely theoretical. As the world waits for more details surrounding the hack, though, NVDA stock is shaking off the turmoil. Shares are gaining 2% to close out the day, with volume falling along daily averages.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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