Nvidia (NVDA) stock rose more than 6% on Thursday, along with other chip stocks, as technology drove a market recovery.
The recovery came a day after shares of the AI chip giant fell more than 5%.
Wall Street is bullish on Nvidia after shares fell more than 25% from an intraday peak of around $140 in June.
In an upbeat statement on Wednesday, Piper Sandler warned investors of a “huge opportunity” to buy the AI chip giant and other chip names following the recent sell-off in the sector.
Analysts have dismissed a recent report about a possible delay in Nvidia’s next-generation chip, the Blackwell.
“We continue to see urgent demand across the board, and that limits the risk of supplies being held up while customers wait for the next generation of chips to become available in volume,” Antoine Chkaiban, technology infrastructure analyst at New Street Research, told Yahoo Finance on Thursday.
Chkaiban recently upgraded the stock to Buy with a price target of $120.
Other chips that rose on Thursday included Advanced Micro Devices (AMD), Broadcom (AVGO) and Intel (INTC), all of which rose more than 5%.
Chip stocks have remained volatile in recent weeks as big technology companies led the recent market decline.
Shares of Nvidia fell more than 6% on Monday as shares of the “Magnificent Seven” suffered a market cap loss of more than $650 billion in Monday’s stock market crash.
Stocks have clawed back some of those losses, falling about 2% over the past four trading sessions.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X on @ines_ferre.
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