- NYSE:NIO gained 1.14% during Thursday’s trading session.
- Nio reveals that NVIDIA’s new chip restrictions will not affect its production.
- JP Morgan believes that Chinese EV stocks might be reaching a bottom.
NYSE:NIO rose for the second straight day following its second quarter earnings as investors received another piece of good news from the company. On Thursday, shares of Nio gained 1.14% and closed the trading session at a price of $17.68. Stocks rose higher for the second straight day as all three major indices once again closed in the green. The markets briefly fell into negative territory earlier in the day when Chairman Powell reiterated strict interest rate hikes to battle inflation. Overall, the Dow Jones added 193 basis points, the S&P 500 gained 0.66%, and the NASDAQ rose by 0.60% during the session.
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The good news for Nio investors was that the company revealed its production will not be affected by the recently implemented restrictions on chip sales to China. Specifically, Nio buys the Drive Orin chips from NVIDIA (NASDAQ:NVDA) which power its electric vehicles. The same chip is used by other EV makers in the country and is the primary chip used to power the new ES7 SUV. The news comes as a relief to shareholders after the US government placed new regulations on chip exports to countries like China and Russia.
NIO stock forecast
It seems as though Wall Street analysts are coming back around on Nio and the Chinese EV industry as well. Despite its wider than expected loss last quarter, JP Morgan analysts are predicting that Chinese EV stocks are bottoming out and that much of the macroeconomic headwinds in China are already baked into the stock price. According to TipRanks, all 12 analysts that cover Nio have a Buy rating for the stock with an average price target of $30.97.
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