Wall Street is optimistic about the AI opportunity for the company, as evident from a slew of price target hikes the stock received before and after the earnings announcement.
Nvidia Corp. (NVDA) stock is down in the early premarket session on Tuesday, signaling that the chipmaker’s stock may extend its three-day losing streak.
The stock has been moving southward amid anxiety ahead of the company’s quarterly results, which were released Wednesday after the market closed. Notwithstanding the second-quarter beat and a positive outlook, traders reacted negatively to the quarterly report.
Concerns about a hit to Nvidia’s China business weighed on investors’ minds amid uncertainty surrounding the U.S.’s China chip curbs.
The weakness persisted on Friday, following reports that Chinese e-commerce giant Alibaba (BABA) was developing an AI chip designed for inference. Nvidia’s stock ended the session down 3.34%, underperforming the broader tech sector.
In premarket trading, the stock fell 1.15% to $172.11, aligning with the stock futures, which have turned markedly lower as investors braced for a raft of economic data and Fed speeches that have implications for the September rate decision.
Traders also weighed on the U.S. Court of Appeals for the Federal Circuit’s ruling that President Donald Trump’s tariffs are illegal. The president denounced the decision and stated that he would appeal the ruling to the Supreme Court.
On Stocktwits, retail sentiment toward Nvidia stock was ‘extremely bullish’ (86/100) by early Tuesday, and the message volume on the stream was ‘extremely high.’
Nvidia’s stock has risen about 30% this year. Wall Street is optimistic about the AI opportunity for the company, as evident from a slew of price target hikes the stock received before and after the earnings announcement.
The Koyfin-compiled average price target for the stock is $206.03, implying roughly 20% upside potential from current levels.
A JPMorgan report showed that Nvidia was also a favorite among retail investors, with the net retail buying in the stock at $867 million last week.
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