NASDAQ:NVDA gained 6.94% during Thursday’s trading session.
NVIDIA continues to see Wall Street analyst support following its earnings report.
AMD announces it is hosting an Analyst Day on June 9.
UPDATE: Nvidia stock is down 2.5% at $191 about 45 minutes into Friday’s down market. The Nasdaq is down 1.5%; the S&P 500, 1%; and the Dow, 0.4%. The market is doing a bit of digestion after Thursday was so tremendously bullish. What pulled the market down on Friday, including NVDA shares, was the non-farm payrolls data released by the US government. It state that instead of 328,000 net new jobs in May, the economy is estimated to have created 390,000. The reason this figure, which is good for workers, disgruntles the market is that it means that the tight labour market will likely lead to higher inflation for longer. The only good sign is that wage increase are slowly coming down. With high employment levels though, wage growth typically leads to overal inflation growth, which could lead the Federal Reserve to raise interest rates higher than expected. The central bank is already expected to raise the fed funds rate by 50 basis points in June and July. If high employment continues, and the economy remains robust, then the Fed will continue raising rates until the economy slows down. This strategy has the obvious problem that the central bank may overshoot and cause a recession. Additionally, higher interest rates tend to make growth stocks like Nvidia less appetizing compared with higher bond prices.
NASDAQ:NVDA powered higher on Thursday alongside a broader tech rally that sent all three major industries surging into the green. Shares of NVDA jumped higher by 6.94% and closed the bullish session at $195.92. Stocks snapped their two-day losing streak following the Memorial Day long weekend as investors went bargain hunting for some beaten down tech stocks. The Dow Jones saw a wild swing from being down 300 basis points early in the day, to gaining 435 basis points by the closing bell. The S&P 500 added 1.84% and the NASDAQ led the way with a 2.69% gain during the session.
Stay up to speed with hot stocks’ news!
Investors certainly heeded the advice of Bank of America analyst Vivek Arya after he chose NVIDIA as his top large-cap sector stock to own. Despite softer than expected guidance from the company at least week’s earnings call, Wall Street analysts continue to show their support for the chip giant. In addition to Arya, Evercore analyst CJ Muse also reiterated his buy rating for the stock. TipRanks shows that Wall Street is overwhelmingly bullish with 27 Buy ratings and 0 Sell ratings for NVIDIA, as well as a median price target of $271.41 for the next twelve months.
Nvidia stock forecast
One of NVIDIA’s chief rivals, AMD (NASDAQ:AMD), announced it will be holding an Analyst Day on June 9th. These events provide an update on the business operations as well as the corporate strategy, technology, and product roadmaps. NVIDIA investors will likely be keeping a close eye on AMD’s updates, as the two companies vie for dominance in the gaming and datacenter GPU sectors. Shares of AMD were up 7.28% during Thursday’s session.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
