Why is Nvidia rising again?

Nvidia shares burgeoned nearly 8% on Tuesday, reversing massive losses suffered the previous day.

  • Nvidia Corp (NASDAQ: NVDA) share price closed 8% higher on Tuesday (09 March)
  • This was a reverse of the previous day, when shares had declined 7%
  • Nvidia’s rally came on the back of falling US bond yields, which had hit a 14-month high just a day prior
  • Analysts predict that the stock’s price could rally another 19% in the next twelve months
  • Trade NVDA shares, long or short, with an IG account

Nvidia share price: what’s the latest?

Shares of Nvidia Corporation spiked up 8% to close at US$501 on Tuesday (09 March 2021), erasing the losses suffered a day earlier.

On Monday, Nvidia’s share price plunged nearly 7%, after US bond yields hit a 14-month daily peak rate of 1.59%.

On Tuesday, the daily 10-year Treasury Yield fell to 1.55%, which motivated investors to move back into technology stocks, evident by the Nasdaq Composite Index’s 3.7% increase for the session.

Nvidia shares are down 4.5% year to date, as of Tuesday close.

Where do analysts see Nvidia shares going next?

Bank of America analyst Vivek Arya wrote in a note on Monday (08 March) that his firm’s monthly Steam graphics processing unit (GPU) survey revealed a ‘robust gaming environment’ with the potential for more GPU upgrades.

The survey showed that only 11% of Nvidia gamers currently own a GPU with performance that can rival the latest consoles from Sony and Microsoft. As such, Arya predicts that there will be accelerated adoption of new generation GPUs from Nvidia.

The analyst has reiterated a ‘buy’ recommendation on the semiconductor stock.

Meanwhile, Jefferies analyst Mark Lipacis believes that Nvidia’s high gaming GPU revenue, which has coincided with a material increase in cryptocurrency prices, could pose risks to the company’s gaming GPU revenues and stock prices down the road.

However, he noted that M Science purchase data suggests that retail crypto miners are not behind the large gaming GPU revenues, unlike 2017’s ‘crypto-bubble’.

Instead, Lipacis attributes Nvidia's recent gaming GPU shipments to its Ampere GPU product cycle. He rated the stock a ‘buy’ with a US$680 price target on 03 March.

Across the board, MarketBeat data shows that NVDA has received a consensus stock rating of ‘buy’, and 12-month price target of US$594.31, which represents an upside of 18.6%.

How to trade Nvidia stocks with IG

Are you feeling bullish or bearish on Nvidia’s stocks?

Either way you can buy (long) or sell (short) the asset using derivatives like CFDs offered on IG's industry-leading trading platform, or by investing in the share directly, in a few easy steps:

  1. Create a live or demo IG Trading Account, or log in to your existing account
  2. Enter <Nvidia Corp> in the search bar and select the instrument
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.