Why Nvidia Stock Is Jumping Nearly 2% Premarket Today

Shares of Nvidia Corp. NVDA rose in premarket trading on Monday, inspired by positive commentaries regarding its second-quarter earnings from some analysts.

Nvidia is scheduled to release its quarterly results Wednesday after the market close, with analysts, on average, estimating earnings per share of $2.07 on revenue of $11.17 billion. This marks an increase from the year-ago number of $0.51 and $6.7 billion, respectively.

KeyBanc Capital Markets analyst John Vinh in a note released Monday said he expects a beat-and-raise quarter from the chipmaker. He also sounded upbeat about the near-term outlook, premised on the company’s AI prowess.

“Nvidia’s second half will likely show continued growth even off the massive second-quarter levels, given the still-limited industry capacity near term,” the analyst said.

Vinh maintained an Overweight rating for Nvidia shares and upped the price target from $550 to $620. Separately, HSBC analysts also raised the price target from $600 to $780, according to Benzinga Pro data.

Wedbush analyst Daniel Ives said he expects Nvidia’s results to give a big boost to the tech sector as a whole.

In premarket trading, Nvidia stock rose 1.95% to $441.45, according to Benzinga Pro data. The stock has nearly doubled year-to-date and is the best-performing S&P 500 stock for the year.

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