From Slump to Surge: Nvidia’s Stock Rebound Shakes Up the Market
Nvidia Corp. shares surged back with impressive force on Tuesday after a three-day slide that sent them into correction territory.
The stock jumped 6.8%, securing its position as the second-best performer in the S&P 500 SPX for the day. This strong rebound came after Nvidia shares (NVDA) had fallen 12.9% over the preceding three sessions.
This was the first time since March 9, 2021, that Nvidia’s stock climbed by 6% or more following a decline of 6% or more in the previous session, according to Dow Jones Market Data.
Morgan Stanley reaffirmed its optimistic outlook on Nvidia’s stock in a Tuesday report, following a recent trip to Taiwan.
“Demand-side indications remain robust, with surprising demand still for H100, growing visibility for limited H200 ramp, Blackwell demand booked out through mid-next year, and a strong ramp of the H20 for the China market,” wrote Morgan Stanley analyst Joseph Moore. The H100 is Nvidia’s older chip, while the H200 is its current line. Blackwell is expected to start shipping later this year.
Moore also acknowledged a “mixed” supply-chain situation, though this was not unexpected. For instance, it makes sense that the H100 has “very short” lead times given where Nvidia is in its product lifecycle, he said.
“We are, of course, aware that the stock has added nearly a trillion in market cap since earnings, so a good outlook is at least partly discounted — but we can report that the outlook does remain good,” he added.
UBS analyst Karl Keirstead also found strong support for Nvidia in his recent survey of enterprise executives.
“As expected, and consistent with the results of our prior survey, Nvidia remains the dominant choice for both training and inference workloads, with respondents now leaning much more into Hopper (H100 + H200) and away from legacy and lower-end GPUs,” he wrote.
Furthermore, Keirstead noted that rack-scale systems are set to experience significantly higher demand, particularly for model work.
