Key Highlights
- NVDA climbed approximately 1.3% in early trading to $201.64, supported by Micron’s impressive quarterly performance
- Micron delivered earnings per share of $25.11 with revenue reaching $41.46B, surpassing analyst expectations; Q4 guidance projects ~$50B in sales
- OpenAI introduced a proprietary AI chip developed in partnership with Broadcom; Qualcomm announced strategic supply agreements with Microsoft and Meta
- Analysts maintain a consensus Buy recommendation on Nvidia with a mean price target of $323.83
- The Street anticipates NVDA’s next earnings release approximately August 26, projecting EPS of $2.07 on revenue of $91.7B
Nvidia (NVDA) stock advanced roughly 1.3% during Thursday’s premarket session, touching $201.64, as robust performance from Micron Technology sparked optimism throughout the semiconductor industry.
Micron disclosed adjusted third-quarter earnings of $25.11 per share alongside revenue totaling $41.46 billion, easily surpassing analyst projections. Management’s fourth-quarter outlook called for approximately $50 billion in sales and adjusted earnings near $31 per share. Market participants interpreted these figures as confirmation of sustained demand for AI infrastructure, propelling semiconductor equities broadly upward.
S&P 500 futures simultaneously rose about 0.7% before the opening bell, contributing to the bullish environment.
NVDA had finished Wednesday’s session lower by 0.5% at $199, but the Micron-fueled optimism lifted shares back above the psychologically important $200 threshold in early action. This price level has served as key support since the stock initially crossed it in April.
New Challengers Enter the AI Semiconductor Arena
Recent days have spotlighted emerging competition in the space. OpenAI revealed a bespoke AI processor created in collaboration with Broadcom (AVGO), while Qualcomm (QCOM) disclosed supply partnerships with both Microsoft (MSFT) and Meta Platforms (META).
That represents considerable attention on Nvidia’s core market. However, industry analysts emphasize these developments don’t automatically translate to Nvidia losing dominance. The company’s GPUs remain the preferred option for numerous AI applications, and multiple leading technology firms have already pledged support for its upcoming Vera Rubin architecture.
Nonetheless, market participants are monitoring developments carefully. Without concrete evidence demonstrating Nvidia’s sustained market position, some investor hesitation is expected to persist.
Chart Analysis and Wall Street Outlook
From a technical perspective, the stock occupies uncertain territory. NVDA currently trades roughly 4% beneath both its 20-day and 50-day moving averages, while maintaining positions above the 100-day and 200-day averages — preserving the broader upward trajectory.
Momentum signals have weakened. The MACD indicator sits below its signal line, and the 20-day average has crossed beneath the 50-day — representing a near-term bearish configuration. Overhead resistance appears around $217, with downside support near $199.50.
Over the trailing twelve months, shares have appreciated approximately 29%. The stock earned a Barron’s recommendation in mid-May when quoted at $226.
Regarding analyst sentiment, the consensus view stays at Buy with a mean price objective of $323.83. Notable recent ratings include China Renaissance launching coverage with a Buy rating and $319 target, Needham affirming its Buy stance at $270, and DA Davidson reiterating Buy with a $300 target.
NVDA currently commands a forward price-to-earnings multiple of roughly 30.5 times.
The Street anticipates Nvidia will publish quarterly earnings approximately August 26. Consensus estimates project EPS of $2.07, representing growth from $1.04 in the year-ago quarter, on revenue of $91.70 billion compared with $46.74 billion in the corresponding prior-year period.
