Key Takeaways
Nvidia’s volatile month continued on Thursday, with shares rising more than 3% at the start of trading before slipping into negative territory by the afternoon. The stock rebounded earlier in the week and then plummeted earlier in the month before returning to positive territory in September. Nearly all analysts covering Nvidia rate the stock a “buy,” with an average price target about 20% above the current trading price.
Nvidia (NVDA) shares continued their volatile month on Thursday, surging at the start of trading before falling into negative territory by the afternoon.
Shares of the chipmaker, the second-best performing member of the S&P 500 this year, rose more than 3% in the first minutes of trading on Thursday to trade near $127, well above the roughly $119 it closed at in August and a recovery from September’s lows of around $101.
But in recent trading, shares were down about 0.2% near the $123 mark, as the S&P 500 and Nasdaq Composite Index also retreated from earlier highs.
Micron earnings provide early tailwind
Thursday’s early moves came after semiconductor stocks rallied across the board after Nvidia partner Micron (MU) reported better-than-expected profits. Micron issued an upbeat earnings outlook and pointed to “robust AI demand.”
Bank of America analysts said in a Thursday note that Micron’s results should be “positive” for Nvidia and other semiconductor stocks.
Analysts remain bullish on Nvidia
Wall Street analysts remain largely bullish on Nvidia shares. Nearly all of the analysts currently tracking the stock have a “buy” rating, and their average price target of $152.52 represents a premium of more than 20% to Wednesday’s closing price, according to data from Visible Alpha.
Nvidia CEO Jensen Huang announced earlier this week that the company had completed plans to sell about $700 million worth of shares in the company.
