NVIDIA Corporation (NASDAQ: NVDA) is having a strong morning in the market this morning. However, if you’re looking for news that caused the gains, you’re not going to find any. The company hasn’t released any press releases or SEC filings. Nonetheless, there is a good reason for the movement. Today, we’ll talk about:
- Why NVDA is up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why NVDA Is Up
As mentioned above, NVIDIA is having a pretty strong day in the market today, but the company hasn’t released any news. So, what’s the deal? Well it all started yesterday, a day that wasn’t very good for the stock.
Yesterday, Apple announced reduced expectations for holiday quarter revenues. The company cited reduced demand for the iPhone in China for the reason that it slashed more than $4 billion from its revenue expectations for the quarter. This news didn’t just hurt Apple, it hit the market as a whole pretty hard, especially causing pain for companies that supply Apple. Unfortunately, NVDA is one of these companies.
Nonetheless, the stock is bouncing back today as investor sentiment takes another shift. While with no news, anything said here is speculation, we believe that the reason for the quick recovery has to do with the diversity of the company. Sure, Apple is important to NVDA, but that has a lot to do with the chips it sells for self driving car programs and other advanced programs. At the end of the day, NVDA isn’t necessarily tied to the iPhone, nor is its success. So, investors saw the declines as a way to get in at a discount, and the stock is making a strong recovery today.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to NVIDIA, the news yesterday proved to hit hard. But as far as recoveries go, the one we’re seeing from the stock is as strong as any. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:55), NVDA is trading at $134.64 per share after a gain of $6.65 per share or 5.20% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on NVDA. In particular, we’re interested in following the company’s growth ahead, and seeing if the Apple issue does play a role in revenues. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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