NVIDIA shares (NVDA) maintained their upward momentum in premarket trading on Friday, topping Thursday’s 6% surge along with other chip stocks, as technology led the market’s sharp recovery.
The rebound came a day after shares of the AI chip giant fell more than 5% along with other semiconductor stocks.
As of Thursday, Nvidia’s market capitalization had fallen by more than $750 billion from its peak in June, and the company’s shares had fallen about 25% amid a loss of momentum in AI trading and growing concerns about the U.S. economy.
In a bullish note on Wednesday, Piper Sandler advised investors that there is a “great opportunity” to buy AI chipmakers and other semiconductor stocks following the recent sell-off in the semiconductor industry.
Analysts are downplaying recent reports that the launch of Nvidia’s next-generation chip, Blackwell, may be delayed.
“We still feel there is urgent demand overall, mitigating the risk of shipments pausing while customers wait for bulk supplies of next-generation chips,” Antoine Choucairn, tech infrastructure analyst at New Street Research, told Yahoo Finance on Thursday.
Increased spending on data center infrastructure by big tech companies has fueled optimism on Wall Street: More than 40% of Nvidia’s revenue comes from Microsoft ( MSFT ), Meta ( META ), Alphabet ( GOOG , GOOGL ) and Amazon ( AMZN ), according to a Bloomberg analysis.
“I think we’re pretty well set for 2025,” Chikaiban said. [hyperscalers] We expect capital investment to increase. Plans are already in place.”
The analyst recently upgraded Nvidia to a “buy” rating and set a $120 price target.
Shares of Advanced Micro Devices (AMD), Broadcom (AVGO), and Intel (INTC) all closed up more than 5% on Thursday.
Semiconductor stocks surge on Thursday
Semiconductor stocks have been volatile in recent weeks as big technology companies have led the recent market sell-off.
Nvidia shares fell more than 6% on Monday as Monday’s market sell-off wiped more than $650 billion off the market capitalization of the “Magnificent Seven” stocks.
The stock has recouped some of those losses, with shares down about 2% over the past four trading sessions.
Inés Ferré is a senior business reporter at Yahoo Finance. Follow her on X. Follow.
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