- NASDAQ: NVDA gained 3.73% during Wednesday’s trading session.
- Morgan Stanley is still bullish on NVIDIA despite Wall Street's low price target.
- AMD is gaining market share in two areas where NVIDIA has dominated.
NASDAQ: NVDA rose sharply alongside the broader markets on Wednesday as stocks soared following the Fed’s half percentage point rate hike announcement. The hike was anticipated, but is the largest interest rate hike by the Fed since 2000. Investors are optimistic that the Fed’s rate hikes will be able to curb inflation and avoid an economic recession. On Wednesday, shares of NVDA jumped by 3.73% and closed the trading day at $203.34. All three major averages reversed higher as the Dow Jones gained 932 basis points, while the S&P 500 and NASDAQ rose by 2.99% and 3.19% respectively during the session.
Stay up to speed with hot stocks' news!
Earlier this week, Morgan Stanley resumed coverage of NVIDIA’s stock ahead of its Q1 earnings report later this month. Investors might have thought that the equal weight rating and street-low $217 price target were bearish, but the firm reiterated that NVIDIA is a core holding and one of the best growth stocks on the market. The tentative short-term outlook stems from an overvalued multiple and potential headwinds for the remainder of the year. Still, the sentiment from Morgan Stanley is bullish on NVIDIA for the long-term.
NVDA stock forecast
It was another stellar earnings call from AMD (NASDAQ: AMD) who reported a 71% increase in sales for the quarter. Two of the sectors where AMD outperformed were in data centers and gaming chips, which have traditionally been areas dominated by NVIDIA. Much of NVIDIA’s upcoming earnings will likely be compared to AMD’s stellar numbers, particularly in those two sectors. So far this quarter, chip companies have surprised with better than expected earnings from the likes of AMD, ON Semiconductor (NASDAQ: ON), and Qualcomm (NASDAQ: QCOM).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.