Why Is NVIDIA Stock Gaining Thursday?
NVIDIA Corp. (NASDAQ:NVDA) stock rose more than 1% in Thursday’s premarket session as investors welcomed strong results from Micron Technology Inc. (NASDAQ:MU), reinforcing optimism about continued spending on artificial intelligence infrastructure.
The broader market also supported sentiment, with S&P 500 futures gaining about 0.7% ahead of the opening bell.
Micron Results Lift AI Chip Sentiment
Micron reported adjusted third-quarter earnings of $25.11 per share on revenue of $41.46 billion, beating Wall Street expectations.
The company also forecast fiscal fourth-quarter adjusted earnings of about $31 per share on revenue of roughly $50 billion.
Although Micron’s update was company-specific, investors viewed it as a positive signal for the broader AI hardware ecosystem, including NVIDIA.
Technical Picture Remains Mixed
NVIDIA remains up nearly 29% over the past 12 months. However, the stock is consolidating in the near term.
Shares are trading about 4% below both the 20-day simple moving average and the 50-day simple moving average. They remain 2.7% above the 100-day moving average and 5.8% above the 200-day moving average, suggesting the longer-term uptrend remains intact.
Momentum indicators have weakened. The MACD remains below its signal line, while a negative histogram points to fading upside momentum. The 20-day moving average has also slipped below the 50-day moving average, a bearish short-term signal. However, the 50-day moving average continues to hold above the 200-day moving average, preserving the longer-term bullish trend.
Technical traders are watching resistance near $217. A break above that level could strengthen bullish momentum. On the downside, support sits around $199.50, close to the psychologically important $200 mark.
Earnings And Analyst Outlook
Wall Street expects NVIDIA to report quarterly results on or around August 26.
Analysts forecast earnings of $2.07 per share, up from $1.04 a year earlier, on revenue of $91.70 billion, compared with $46.74 billion in the prior-year period.
The stock carries a consensus Buy rating with an average price forecast of $323.83. Recent analyst actions include China Renaissance initiating coverage with a Buy rating and a $319 price forecast, while Needham maintained its Buy rating with a $270 price forecast and DA Davidson reiterated its Buy rating with a $300 price forecast.
NVIDIA trades at about 30.5 times earnings, reflecting its premium valuation relative to many semiconductor peers.
ETF Exposure
NVIDIA is one of the largest holdings in several exchange-traded funds, including the Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD), the Sapient Quality Select ETF (NASDAQ:SQS) and the REX AI Equity Premium Income ETF (NASDAQ:AIPI).
Because of NVIDIA’s significant weighting, large fund inflows or outflows can influence demand for the stock.
NVIDIA Price Action
NVDA Stock Price Activity: NVIDIA shares were up 1.33% at $201.64 during premarket trading on Thursday, according to Benzinga Pro data.
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