Key Takeaways
- The volatile month for shares of Nvidia continued Thursday, with the stock gaining more than 3% in early trading only to slide into negative territory in the afternoon.
- The shares had rallied to start the week and are back in the green for September after falling sharply early in the month.
- Nearly all the analysts who cover Nvidia have a “buy” rating on the stock, with the average price target about 20% higher than where it currently trades.
The volatile month for shares of Nvidia (NVDA) continued Thursday, as the stock surged in early trading only to slip into negative territory in the afternoon.
The chip-maker’s shares, the year’s second-best performers in the S&P 500, rose more than 3% in the opening minutes of Thursday’s session to trade near $127. That put them substantially above the roughly $119 at which they finished August, marking a recovery from September intraday lows near $101.
In recent trading, however, the stock was down about 0.2% near $123, as the S&P 500 and Nasdaq Composite also came off their earlier highs.
Micron Earnings Provided an Early Boost
The early move Thursday came as earnings from Micron (MU), a Nvidia partner, came in better than expected, sending chip stocks higher across the board. Micron pointed to “robust AI demand” as it issued a rosy revenue outlook.
Bank of America analysts in a Thursday note said Micron’s results pointed to “a positive read-across” for Nvidia and other semi stocks.
Analysts Remain Bullish on Nvidia
Wall Street analysts are still broadly bullish on Nvidia’s shares. Nearly all of the analysts currently tracking the stock have “buy” ratings on it, according to Visible Alpha data, while their mean price target of $152.52 represents a more than 20% premium to Wednesday’s closing price.
Nvidia CEO Jensen Huang earlier this week reported the conclusion of a planned sale of some $700 million in company stock.