There’s no denying how important Nvidia is to the stock market. The chipmaker reported better-than-anticipated third-quarter results and issued strong guidance. However, elevated investor expectations and a slight slowdown in revenue growth initially sent the stock down around 3% in the premarket. Stock futures followed Nvidia’s lead, riding slight losses at the time. Then the turnaround happened. Nvidia shares pared losses throughout the morning and turned positive around 8:15 a.m. ET. In that time, stock futures recovered their earlier losses and were last up around 0.5%. Nvidia, meanwhile, traded 1.7% higher around 8:43 a.m. ET. NVDA 1D mountain NVDA recovers “There was little to change the narrative that AI investments remain strong and NVDA remains the best positioned to benefit from that spending,” Barclays traders wrote. “While there will likely be investors concerns again next earnings on positioning/high expectations … the data points and sentiment are likely to remain noticeably positive intra-quarter.” Earlier this week, Bank of America noted that the options market showed the results would be “the most important catalyst left for the remainder of the year, notably, more so than [jobs data], [inflation figures] and [Federal Reserve announcements].” Thursday’s moves before the bell solidified this notion. @SP.1 1D mountain S & P 500 futures, 1 day Analysts in general see the stock building on its strong year-to-date gains after this latest report. Many firms lifted their price targets on the chipmaker, including Citi, Wells Fargo and Bernstein . The stock is up more than 190% year to date. Elsewhere Thursday morning on Wall Street, Wells Fargo initiated GE Vernova as overweight, citing growing power demand from artificial intelligence. “As power demand grows and more distributed generation is added to the mix, aging grids will require significant investment to manage the increasingly complex and dynamic environment,” Wells Fargo said. “GEV’s transformers, HVDC [High-voltage direct current], and grid software offerings are well positioned to benefit from this growing demand.”
Nvidia reversal moves whole stock market higher, proving again its unprecedented influence
Nov 21, 2024
