Why Nvidia stock jumped up 10 percent

Posted: 24 March 2022 4:37 pm
NvidiaChartStock_Finder_1800x1000 (1)

Positive news from the largest player, Nvidia, and a market upswing fueled a semiconductor rally. But it’s too early to say the sector has turned the corner.

Chip maker Nvidia (NVDA) helped lead the market higher today, climbing as much as 10% after several positive news items from the company’s investor day and its annual AI conference, both held this week.
The company used the event to outline new opportunities worth as much as $1 trillion, news reports say, and CEO Jensen Huang said in an online event Nvidia might work with Intel (INTC) to help clear up chip shortages vexing the industry.
Intel stock also rose by as much as 10% on the day, with much of the industry following. Advanced Micro Devices (AMD) rose 5%, Micron (MU) 3% and Qualcomm (QCOM) 3%, to name a few of the gainers.
The sector has struggled this year as concerns about inflation and interest rate hikes have led to a move away from high-growth stocks in areas like technology. A lasting rally would be a significant turn — and the end of a buying opportunity for tech investors.

Why Nvidia is a key stock to watch

Nvidia is an important bellwether as the largest semiconductor stock by market cap, rising 102% in the past 12 months. It’s been down more than 20% this year, and remains down about 13%.

The company primarily designs graphics chips for gaming, mobile devices and autos, which are produced by foundries like Taiwan Semiconductor (TSMC). But its reach is wide and its products are used in artificial intelligence and the development of Web3.0 and Metaverse technologies.
A failed plan to acquire British chip designed Arm Holdings, which regulators opposed, has hurt the stock recently, as has the sour overall market.
From an all-time high of $346.47 last November, the stock traded down around $213 earlier this month. But after a strong week, it’s trading at this writing at $279.52.
That could still be a buying opportunity. Analysts rate Nvidia a buy overall with a price estimate of $341.15 within a year. That could rise given positive analyst comments coming out this week.
But the stock has more than doubled in a year, and such gains can take a while to consolidate. It’s also too soon to tell if chip stocks have turned a corner in what has been a volatile market in 2022.
If you’re a believer that Web3 and Metaverse technologies will pay off big in the long term, though, it’s definitely a name to consider at the right price.
Read more in our full guide to Nvidia and our guide to semiconductor stocks. Watch Huang’s keynote speech to the Graphics Technology Conference here.

Ready to open an account or considering a new broker? Find the best onlinebrokers for your needs. Or check out fees and features in our comparison table to find a better deal today.

Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.

Finder is not an adviser or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.

Ask an Expert

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site