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Nvidia (NVDA) Moves 18.7% Higher: Will This Strength Last?

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Nvidia (NVDA - Free Report) shares soared 18.7% in the last trading session to close at $114.33. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.5% loss over the past four weeks.

The upswing was likely driven by a broader market rally following US President Donald Trump’s announcement of pausing the reciprocal tariffs for 90 days. However, a baseline tariff of 10% on imports would continue to apply. Also, the reports of sparing NVIDIA’s H20 AI chips from export controls by the US government boosted the stock’s price.

This maker of graphics chips for gaming and artificial intelligence is expected to post quarterly earnings of $0.93 per share in its upcoming report, which represents a year-over-year change of +52.5%. Revenues are expected to be $43.22 billion, up 65.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Nvidia, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NVDA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Nvidia is a member of the Zacks Semiconductor - General industry. One other stock in the same industry, Intel (INTC - Free Report) , finished the last trading session 18.8% higher at $21.53. INTC has returned -8.3% over the past month.

For Intel, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0. This represents a change of -100% from what the company reported a year ago. Intel currently has a Zacks Rank of #3 (Hold).


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