NVIDIA shares rose 0.2% in premarket trading on Tuesday, attempting to recover after a 6.9% decline over the previous five sessions. Last week, the stock briefly surpassed the $200 threshold during a semiconductor sector rally but failed to hold it.
After moving above its months-long trading range, NVIDIA shares pulled back. Investors are now considering whether a sustained rally will depend on the company’s earnings report scheduled for May 20. FactSet reports the current average analyst price target is $269.82. This implies analysts expect the stock to rise 34.9% from the recent $200 level, reflecting the belief among many on Wall Street that NVIDIA trades below fair value.
The chief investment officer at New Age Alpha said NVIDIA is at least fairly valued or possibly undervalued. He noted that the company has posted twelve consecutive quarters of strong revenue growth. Continued rapid growth in AI demand supports this view. Many institutions also agree that NVIDIA has a strong advantage in the AI accelerator hardware market, despite short-term stock price volatility.
Fresh evidence of sustained AI chip demand. On Tuesday, Foxconn, NVIDIA’s main AI server production partner, provided more proof of strong demand for AI chips. The Taiwanese company, also known as Hon Hai Precision Industry, reported a 30% increase in revenue for April compared to last year. This growth came from its cloud and networking products, which have now become Foxconn’s biggest business, overtaking its older consumer electronics segment. Foxconn also said it expects AI rack production to keep growing through the second quarter, even though the broader tech industry usually slows down at this time of year.
Featured CoursesRecent news
Spotify Stock Surges 15% on Long-Term Growth Targets and New Premium Features
Spotify shares had their best day in almost seven years, climbing 15% on Thursday. The jump came after the company’s investor day, where Spotify shared long-term revenue and margin goals to give investors a clearer picture of its plans. These specific commitments sparked new interest in the stock after a stretch of weaker performance. Co-CEOs […]
Nebius Stock Jumps 7.8% on $2.6B Bloom Energy Power Deal for AI Data Centers.
Nebius Group shares rose 7.8% in premarket trading after the AI cloud provider announced a $2.6 billion deal with Bloom Energy to supply fuel-cell power for its data centers. This move tackles a major challenge in building AI infrastructure. The deal also highlights the growing power crisis for neocloud operators and explains why Bloom Energy […]
SpaceX IPO Opens to Retail Investors Through Robinhood, Fidelity, and Schwab
SpaceX has announced that some shares will be available through Robinhood, Fidelity, and Charles Schwab. This means everyday traders can access the IPO at the same price and time as big institutional buyers. Here’s what this means for retail investors and why it’s important to pay attention to the details. This approach is different from […]
Trade with fewer limits
Day trade with fewer limits at fast speed. Buy stocks and ETFs at low fees.