Here's How Nvidia Stock Extended Its Recovery Rally on Monday
Shares are Fast Approaching New High
Key Takeaways
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.