Goldman Sachs strategist calls Nvidia "the most important stock" in 2024; here are the reasons

After plummeting last week when there was a bloodbath in the US stock market, chipmaker Nvidia gained over 6% Tuesday. As the market improved considerably after tanking, Nvidia shares soared and closed at $116.14. The price of the chipmaker stock has doubled in value since the beginning of the year. According to 'Invesopedia', Nvidia will report its earnings for the quarter on August 28. The market analyst and share market strategists expect an earnings-fueled post-market move could potentially mark "the technical low for the largest index weights and AI darlings," ahead of a September rally.

Nvidia: "Most important stock" of the year

Calling it the "most important stock" of the year, Goldman Sachs strategist Scott Rubner said Nvidia's earnings and the Federal Reserve's Jackson Hole Economic Symposium could kick-start a rally for the stock market. He also said that the market could be poised for a Labor Day rally, leaving "a short-term window to buy the dip as technical pressure eases."

Also Read : Here's how much the US is paying for all the Olympic gold, silver and bronze medals

Nvidia gains for the third consecutive day

On Tuesday, stocks gained 4.4% to 113.84 in the morning session as it moved beyond the 21-day average. The Chinese chipmaker stock rose 4.1% on Monday, bouncing back from its August 5 low of 90.69. However, it is still below its 50-day line.

Biden Administration imposes restrictions

The chipmaker's shares nosedived late last year after the Biden Administration imposed new restrictions targeting chips Nvidia created for the Chinese market. It also banned the sale of Huawei telecommunications equipment, citing national security risks.

Chipmakers soar

Besides Nvidia, other chip manufacturers also made considerable gains on Tuesday. Advanced Micro Devices (AMD) went up more than 2% at 139.59, Intel (INTC) increased by 2% to 19.80 and Qualcomm (QCOM) rose by more than 1% to 164.67. All these stocks have fallen sharply in the last few months.

FAQs:

How much gain did Nvidia shares make on Tuesday?
As the market improved considerably after tanking, Nvidia shares soared and closed at $116.14. The price of the chipmaker stock has doubled in value since the beginning of the year.

Why did Nvidia stocks nosedive last year?
Chipmaker Nvidia's shares nosedived late last year after the Biden Administration imposed new restrictions targeting chips Nvidia created for the Chinese market. It also banned the sale of Huawei telecommunications equipment, citing national security risks.