Tuesday was a big bounce back for Nvidia Corp. shares after a three-session drop that put them in correction territory.
The stock made a big comeback on Tuesday, rising 6.8% to finish the day as the second-best performer in the S&P 500 SPX. After dropping 12.9% in the three sessions before that, Nvidia shares NVDA, +6.76% went up again.
Dow Jones Market Data says this was the first time since March 9, 2021 that the stock went up 6% or more after going down 6% or more the previous day.
Morgan Stanley said again in a report released Tuesday that it was optimistic about Nvidia’s stock. The report was based on the firm’s recent trip to Taiwan.
In the note, Joseph Moore of Morgan Stanley said, “Demand-side indications remain robust, with surprising demand still for H100, growing visibility for limited H200 ramp, Blackwell demand booked out through mid-next year, and a strong ramp of the H20 for the China market.” An older Nvidia chip is the H100. The newest chip from Nvidia is the H200. Late this year, Blackwell will begin shipping.
Moore agreed that the supply chain picture was “mixed,” which wasn’t a surprise. He said that it makes sense that the H100 has “very short” lead times given where Nvidia is with its products.
“We are aware that the stock’s market value has grown by almost a trillion dollars since earnings, so we know that a positive outlook is at least partly overstated,” he said.
Karl Keirstead, an analyst at UBS, also found that enterprise executives were very positive about Nvidia in a recent poll.
He wrote, “As expected and in line with the results of our previous survey, Nvidia remains the clear choice for both training and inference workloads, with respondents now leaning much more toward Hopper (H100 + H200) and away from legacy and lower-end GPUs.”
Keirstead also wrote that rack-scale systems will be used for a lot more things, especially model work.
