Key Takeaways
- Nvidia shares gained Monday, leading other chip stocks higher.
- The surge helped lift the broader tech sector and the major U.S. indexes, after losing ground Friday.
- The gains for Nvidia came after partner TSMC reported a jump in sales, and Evercore ISI analysts issued a bullish note Monday ahead of the chipmaker’s earnings later in the month.
Nvidia (NVDA) shares gained Monday, leading other chip stocks higher in a boost to the tech sector as the major U.S. indexes looked to rebound from Friday’s losses.
Shares of Nvidia were up close to 3% at $133.56 in intraday trading, making it one of the best-performing stocks on the Dow Jones Industrial Average. Shares of several Nvidia partners like Micron Technology (MU), Dell (DELL), and Supermicro (SMCI) also climbed, along with other chip stocks including Broadcom (AVGO), Advanced Micro Devices (AMD), Qualcomm (QCOM), Western Digital (WDC), and Intel (INTC).
The surge helped lift the broader tech sector, with several of the other mega-cap members of the “Magnificent 7” stocks also advancing. The tech-heavy Nasdaq was up over 1%, while the S&P 500 gained 0.6%, and the Dow edged 0.2% higher.
The gains for Nvidia came after partner TSMC (TSM) reported a jump in sales, and Evercore ISI analysts on Monday added the chipmaker to their “tactical outperform” list ahead of Nvidia’s earnings report on Feb. 26, as a potential catalyst for the stock.
The analysts issued a $190 price target, more than 40% above Monday’s intraday price. The average target from analysts polled by Visible Alpha, who have remained overwhelmingly bullish on the stock despite recent pressure amid concerns about the pace of Big Tech’s AI spending, is roughly $174, suggesting about 30% upside.