Why Nvidia (NVDA) Stock Is Up Today

Radek Strnad /
2023/03/17 11:38 am EDT
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What Happened:

Shares of designer of graphics chips Nvidia (NASDAQ:NVDA) were up 5.49% in the pre-market session after Morgan Stanley upgraded the stock's rating to Overweight (Buy) from Equal-Weight (Hold) and raised the price target to $304 from $255. The price target implies 19% upside from the current price. The analyst noted that the AI secular trend is a major tailwind for Nvidia, while data center issues have mostly faded. After the initial pop the shares cooled down to $259.76, up 1.2% from previous close.

What is the market telling us:

Nvidia's shares are volatile and over the last year have had 54 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Nvidia is up 79.5% since the beginning of the year, but at $257.02 per share it is still trading 11.5% below its 52-week high of $286.56 from March 2022. Investors who bought $1,000 worth of Nvidia's shares 5 years ago would now be looking at an investment worth $4,263.8.

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