Here's How Nvidia Stock Extended Its Recovery Rally on Monday

Shares are Fast Approaching New High

Key Takeaways

Nvidia extended its stock recovery and closed with the fourth-highest gains in the S&P 500 on Monday, as a large Wall Street firm reiterated an optimistic stance on the chipmaker.

Goldman Sachs reaffirmed its positive outlook on Nvidia ( NVDA ), and shares of the AI chip behemoth advanced 4.4%. Analysts expect robust demand from cloud service providers (CSPs) to drive outperformance by Nvidia's data center segment , despite concerns about the delayed launch of the company's next-generation chip architecture called Blackwell .

Favorable outlooks from brokerages have helped Nvidia out of a slump that accelerated at the beginning of the month amid a broader market selloff, pre-earnings concerns and doubts about the Blackwell timeline. Goldman Sachs , Bank of America , UBS and other analysts have said the correction was an opportunity for investors to buy the dip .

Stock Has Gained 31% Over Eight Days

Nvidia stock has gained 31% over the past eight trading sessions and is fast approaching its all-time closing high of $135.58 set on June 18. Shares closed Monday's session at $130.00.

Nvidia is scheduled for release its eagerly anticipated quarterly earnings report on August 28. The company has blown past increasingly lofty market expectations in the past several quarters.

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