Nvidia (NASDAQ: NVDA) stock is moving higher despite a turbulent start Thursday. The company’s share price was up 1.1% as of 2:10 p.m. ET, according to data from S&P Global Market Intelligence.
The stock opened today’s daily trading session down as much as 7% as concerns about geopolitical risk factors and earnings misses for Alphabet and Tesla continued to drag on the stock. But Nvidia shareholders got some welcome good news in the form of better-than-expected U.S. economic data, and the artificial intelligence (AI) leader’s share price has rebounded.
According to the Department of Commerce, U.S. gross domestic product (GDP) is estimated to have grown 2.8% year over year in the second quarter. That growth came in far better than the average economist target for growth of 1.9%. Prior to the new data, Nvidia stock looked poised for another day of big sell-offs.
The stronger-than-expected economic data has boosted hopes that the economy may be able to achieve a soft landing — avoiding a recession while also managing to get inflation under control. If so, that would be very good news for Nvidia and other growth stocks.
Nvidia stock has seen volatile trading lately, and it sits 15% below the valuation high that it reached in June. The company’s share price is still up roughly 133%, and signs point to demand for its hardware and services remaining quite strong.
With Apple, Microsoft, Amazon, and Meta Platforms all scheduled to report quarterly results over the next week, there’s a good chance that Nvidia stock will see some significant movements in conjunction with the quality of big-tech earnings. Finally, Nvidia will be the last member of the “Magnificent Seven” to report quarterly results this earnings season and is scheduled to publish its results after the market closes on Aug. 28.
Nvidia’s last update guided for revenue of roughly $28 billion in the quarter — good for growth of 107% year over year. But the company has been crushing its own guidance lately, and Wall Street will likely be expecting a substantial sales beat. The AI leader’s upcoming quarterly report looks poised to be the most influential stock market event this earnings season.
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $700,076!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of July 22, 2024
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
—
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact [email protected]
