On Thursday, Nvidia’s stock staged a recovery after experiencing a minor downturn the previous day. This resurgence in the broader technology sector was largely attributed to two significant factors: the positive earnings report from chip manufacturer Qualcomm and optimistic commentary from the Federal Reserve, both of which potentially contributed to Nvidia’s upward trajectory.
Nvidia’s shares saw a notable increase of 1.7% on Thursday, reaching $844.27, which marked a rebound from the 3.9% decline witnessed in the preceding trading session.
Investors were buoyed by Federal Reserve Chairman Jerome Powell’s remarks, made the day prior, hinting at the possibility of interest-rate cuts later in the year. This sentiment was particularly favorable for high-growth technology companies like Nvidia. Furthermore, Qualcomm, a prominent player in the mobile semiconductor market, announced robust earnings for the latest quarter, instilling confidence in the semiconductor industry as a whole.
In premarket trading, Qualcomm’s stock surged by 4.5%, signaling positive sentiment among investors. Other chip makers, including Advanced Micro Devices (AMD) and Intel, also experienced gains, with AMD rising by 1.2% and Intel adding 1.5%. Additionally, futures for the Nasdaq 100 index advanced by 0.7%, reflecting overall optimism in the tech sector.
Nvidia’s impressive performance year-to-date was also noteworthy, with shares soaring by 68% since January 1st. This substantial outperformance compared to broader market indices such as the S&P 500 and the Nasdaq Composite, which have risen by 5.2% and 4%, respectively, over the same period, underscored Nvidia’s strong position and continued investor confidence in the company’s prospects.