Here’s how Nvidia Stock extended its recovery rally on Monday

Stocks are quickly approaching a new high

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• Shares of Nvidia advanced 4.4% on Monday, one of the biggest gains in the S&P 500.

• The gain was due in part to Goldman Sachs reiterating its positive outlook on the company.

• Goldman was just the latest Wall Street firm to express enthusiasm for Nvidia after the stock’s sharp decline earlier this month.

Nvidia extended its stock rally and ended Monday with the fourth-biggest gain in the S&P 500, as a major Wall Street firm reiterated its bullish stance on the chipmaker.

Goldman Sachs reaffirmed its positive outlook on Nvidia (NVDA), and AI chip shares increased by 4.4%. Analysts expect strong demand from cloud service providers (CSPs) to boost performance in Nvidia’s data center segment, despite concerns over the delayed launch of the company’s next-generation chip architecture, called Blackwell.

The favorable outlook from brokerages helped Nvidia emerge from a slump that accelerated earlier in the month amid a broader market selloff, pre-earnings concerns and doubts about Blackwell’s timeline. Goldman Sachs, Bank of America, UBS and other analysts said the correction was an opportunity for investors to buy the dip.

The stock gained 31% in eight days

Shares of Nvidia have gained 31% in the past eight trading sessions and are fast approaching the all-time closing high of $135.58 set on June 18. Shares closed Monday’s session at $130.00.

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Nvidia is scheduled to release its eagerly awaited quarterly earnings report on August 28. The company has outperformed increasingly high market expectations over the past several quarters.

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