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Shares are Fast Approaching New High
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Nvidia CEO Jensen Huang at the Nvidia GTC Artificial Intelligence Conference on March 18, 2024 in San Jose, California.
Key Takeaways
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Nvidia stock advanced 4.4% Monday, one of the biggest gains in the S&P 500.
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The gain was due in part to Goldman Sachs reiterating its positive outlook on the company.
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Goldman was just the latest Wall Street firm to express enthusiasm about Nvidia after the stock’s sharp decline earlier this month.
Nvidia extended its stock recovery and closed with the fourth-highest gains in the S&P 500 on Monday, as a large Wall Street firm reiterated an optimistic stance on the chipmaker.
Goldman Sachs reaffirmed its positive outlook on Nvidia (NVDA), and shares of the AI chip behemoth advanced 4.4%. Analysts expect robust demand from cloud service providers (CSPs) to drive outperformance by Nvidia’s data center segment, despite concerns about the delayed launch of the company’s next-generation chip architecture called Blackwell.
Favorable outlooks from brokerages have helped Nvidia out of a slump that accelerated at the beginning of the month amid a broader market selloff, pre-earnings concerns and doubts about the Blackwell timeline. Goldman Sachs, Bank of America, UBS and other analysts have said the correction was an opportunity for investors to buy the dip.
Stock Has Gained 31% Over Eight Days
Nvidia stock has gained 31% over the past eight trading sessions and is fast approaching its all-time closing high of $135.58 set on June 18. Shares closed Monday’s session at $130.00.
Nvidia is scheduled for release its eagerly anticipated quarterly earnings report on August 28. The company has blown past increasingly lofty market expectations in the past several quarters.
Read the original article on Investopedia.
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