Why Nvidia Stock Is Shooting Up Premarket

Nvidia Corp. NVDA shares have been on a roll in recent sessions.

What Happened: The stock rallied on Wednesday despite the iShare Semiconductor ETF SOXX and the Invesco QQQ Trust QQQ declining 0.99% and 1.36%, respectively.

The momentum may be spilling over into Thursday’s session.

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In premarket trading, Nvidia stock rose 1.87% to $269.64, according to Benzinga Pro data. The stock has soared over 81% and from its Oct. 13 lows of $108.13, it has gained a steeper 145%.

Apart from the optimism over the company’s prospects on the AI front, Nvidia stock could receive a shot in the arm in Thursday's session from an upward adjustment of price target by Needham.

Needham analyst Rajvindra Gill maintained a Buy rating and upped the price target from $270 to $300, suggesting over 13% upside potential. The analyst said the positive action follows the company’s annual GPU Technology conference.

“We expect NVDA's valuation to increase based on near-term data center strength, receding gaming headwinds, and greater traction in inference and software markets,” he added.