Nvidia Stock Rises on Dip-Buying: 3 Reasons to be Optimistic

Dow Jones
11/06

Nvidia stock was attracting bargain hunters early Friday after the chip maker's steep selloff. There are a few reasons to look on the bright side despite worries rocking the artificial-intelligence trade.

Nvidia shares were up 4.4% at $189.52 in premarket trading. If the move holds it will recoup some of its 9.3% loss the previous day, which marked its second largest one-day market cap decline on record and took it back to levels last seen in April this year.

There are three things which could be fueling some positivity. Firstly, Texas Governor-elect Gina Hinojosa suggested she wasn't outright opposed to data-center construction in the state, which is a particularly important hub for many of Nvidia's customers.

"It is not that I hate data centers. I hate the way they are taking advantage of Texas," Hinojosa said in an interview with CNN.

Hinojosa has previously called for new approvals on data centers to remain on pause until the Texas Legislature can meet next year to pass "real protections." Her latest words suggest developers might just have to meet stricter standards rather than facing a complete block on construction.

Secondly, Nvidia appears to be exploring ways to sidestep any data-center moratoriums. The company has approached private-equity firm Apollo Global Management about retrofitting telecoms facilities owned by Apollo-backed Brightspeed, a broadband provider, and turning them into small-scale AI data centers, The Information reported Thursday, citing unidentified sources.

Nvidia didn't immediately respond to a Barron's request for comment early Friday. The Brightspeed facilities have a total of around one gigawatt of available power, according to The Information, which could run billions of dollars worth of Nvidia chips.

And finally, Nvidia's earnings are coming on Nov. 17 and the stock has tended to rise in the weeks immediately preceding its report. As of Thursday's close, Nvidia traded at a forward price-to-earnings multiple of just 12.7 times according to FactSet and is slightly down for the year so far.

Nvidia was a Barron's stock pick in May when shares traded around $226 with a forward price-to-earnings ratio of about 24 times.

 

应版权方要求,你需要登录查看该内容

免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。

热议股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10