:max_bytes(150000):strip_icc()/GettyImages-20949421211-a377f21ef9f6470fabb80be2302ec3bb.jpg "Nvidia shares continued their recovery rally on Monday")
Key findings
- Nvidia shares rose 4.4 percent on Monday, one of the biggest gains in the S&P 500.
- The increase was partly due to Goldman Sachs reiterating its positive company forecast.
- Goldman was just the latest Wall Street firm to express enthusiasm for Nvidia following the stock’s sharp decline earlier this month.
Nvidia continued its rally, closing with the fourth-highest gain in the S&P 500 on Monday as a major Wall Street firm reiterated its bullish stance on the chipmaker.
Goldman Sachs reiterated its positive forecast for Nvidia (NVDA), and shares of the AI chip giant rose 4.4%. Analysts expect strong demand from cloud service providers (CSPs) to lead to outperformance of Nvidia’s data center segment, despite concerns about the delayed launch of the company’s next-generation chip architecture called Blackwell.
Favorable forecasts from brokerages have helped Nvidia out of a crisis that accelerated earlier this month due to a general market sell-off, worries ahead of earnings and doubts about Blackwell’s timeline. Goldman Sachs, Bank of America, UBS and other analysts said the correction was an opportunity for investors to buy on dips.
Shares have gained 31% in eight days
Nvidia stock has gained 31% over the past eight trading sessions and is quickly approaching its all-time high of $135.58 reached on June 18. The stock closed Monday’s session at $130.00.
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On August 28, Nvidia will release its highly anticipated quarterly report. The company has exceeded increasingly high market expectations in recent quarters.
