Shares are Fast Approaching New High
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.
Key Takeaways
- Nvidia stock advanced 4.4% Monday, one of the biggest gains in the S&P 500.
- The gain was due in part to Goldman Sachs reiterating its positive outlook on the company.
- Goldman was just the latest Wall Street firm to express enthusiasm about Nvidia after the stock’s sharp decline earlier this month.
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.
Shares of Nvidia, the AI chipmaker, surged 4.4% on Monday, making it one of the biggest gainers in the S&P 500. The significant increase in stock price was largely due to Goldman Sachs reiterating its positive outlook on the company. This comes as no surprise, as several Wall Street firms have expressed enthusiasm about Nvidia following its sharp decline earlier this month.
Goldman Sachs reaffirmed its positive stance on Nvidia, which led to a 4.4% increase in the company’s stock price. Analysts believe that Nvidia’s data center segment will outperform, driven by strong demand from cloud service providers (CSPs). Despite concerns about the delayed launch of Nvidia’s next-generation chip architecture called Blackwell, the company is expected to continue its growth trajectory.
Nvidia’s stock had been in a slump due to a broader market selloff, pre-earnings concerns, and doubts about the Blackwell timeline. However, favorable outlooks from brokerages such as Goldman Sachs, Bank of America, and UBS have helped Nvidia recover. These analysts have viewed the correction as an opportunity for investors to buy the dip and capitalize on Nvidia’s long-term potential.
Over the past eight trading sessions, Nvidia’s stock has gained an impressive 31%. It is now approaching its all-time closing high of $135.58, which was set on June 18. As of Monday’s session, Nvidia’s stock closed at $130.00.
Investors are eagerly awaiting Nvidia’s quarterly earnings report, scheduled for release on August 28. The company has consistently exceeded market expectations in recent quarters, and analysts are optimistic about its future performance.
In conclusion, Nvidia’s stock has experienced a significant recovery, with shares approaching their all-time high. The positive outlook from Goldman Sachs and other Wall Street firms has contributed to this upward trend. Despite concerns about the delayed launch of Blackwell, Nvidia’s data center segment is expected to drive growth. Investors are eagerly awaiting the company’s upcoming earnings report, as Nvidia has a track record of surpassing market expectations.
