Nvidia Corp. shares made a remarkable comeback on Tuesday after experiencing a three-session decline that pushed them into correction territory.
The stock surged 6.8%, making it the second-best performer in the S&P 500 SPX on the day. This rally followed a significant 12.9% drop over the previous three sessions.
According to Dow Jones Market Data, this was the first time since March 9, 2021, that Nvidia’s stock rose by 6% or more after losing 6% or more the previous session.
Morgan Stanley reiterated its bullish stance on Nvidia’s stock in a report summarizing a recent trip to Taiwan.
“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,” wrote Morgan Stanley’s Joseph Moore. The H100 is Nvidia’s older chip, with the H200 being its current line. Blackwell is set to start shipping later this year.
Moore also noted a “mixed” supply-chain picture, though not unexpectedly so. For example, it makes sense that the H100 has “very short” lead times given where Nvidia is in its product journey, he said.
“We are, of course, aware that the stock has added nearly a trillion in market cap since earnings, so a good outlook is at least partly discounted — but we can report that the outlook does remain good,” he added.
UBS analyst Karl Keirstead also observed strong sentiment for Nvidia in his recent survey of enterprise executives.
“As expected, and consistent with the results of our prior survey, Nvidia remains the dominant choice for both training and inference workloads, with respondents now leaning much more into Hopper (H100 + H200) and away from legacy and lower-end GPUs,” he wrote.
Additionally, rack-scale systems are set to see increased demand, particularly for model work, Keirstead noted.
