TLDR
- NVDA rose ~1.3% in premarket to $201.64, lifted by Micron’s blowout Q3 earnings
- Micron posted EPS of $25.11 on $41.46B revenue, beating estimates; guided Q4 to ~$50B revenue
- OpenAI unveiled a custom AI chip built with Broadcom; Qualcomm secured supply deals with Microsoft and Meta
- Nvidia still holds a consensus Buy rating with an average price target of $323.83
- Wall Street expects NVDA to report earnings around August 26, with EPS of $2.07 on $91.7B revenue
Nvidia (NVDA) stock climbed about 1.3% in premarket trading Thursday, hitting $201.64, as a surge in Micron Technology stock lifted sentiment across the broader semiconductor space.
Micron reported adjusted Q3 earnings of $25.11 per share on revenue of $41.46 billion, comfortably beating Wall Street forecasts. The company also guided its fiscal Q4 to roughly $50 billion in revenue and around $31 per share in adjusted earnings. Investors took the numbers as a green light for continued AI infrastructure spending, and chip stocks broadly moved higher.
The S&P 500 futures also gained about 0.7% ahead of the open, adding to the positive tone.
NVDA closed the prior session down 0.5% at $199, but the Micron-driven momentum pushed it back above the $200 mark in early trading. That level has acted as a floor for the stock since it broke through in April.
Competition Is Building in AI Chips
The week brought fresh competition into view. OpenAI unveiled a custom AI chip developed with Broadcom (AVGO), and Qualcomm (QCOM) announced supply agreements with both Microsoft (MSFT) and Meta Platforms (META).
That’s a lot of names circling Nvidia’s territory. But analysts are quick to point out that these deals don’t necessarily mean Nvidia is losing ground. Its GPUs are still the top choice for many AI workloads, and several major tech companies have already committed to its next-generation Vera Rubin hardware.
Still, investors are watching closely. Until there’s hard data showing Nvidia is holding its market share, caution is likely to linger.
Technical Picture and Analyst Targets
Technically, the stock is in a mixed spot. NVDA is trading about 4% below both its 20-day and 50-day moving averages, though it remains above the 100-day and 200-day averages — keeping the longer-term uptrend intact.
Momentum indicators have softened. The MACD is below its signal line, and the 20-day has slipped under the 50-day — a short-term bearish signal. Resistance sits near $217, with support around $199.50.
Over the past 12 months, the stock is up roughly 29%. It was a Barron’s pick in mid-May when it was trading at $226.
On the analyst side, the consensus remains a Buy with an average price target of $323.83. Recent calls include China Renaissance initiating with a Buy and a $319 target, Needham maintaining its Buy at $270, and DA Davidson reiterating Buy at $300.
NVDA trades at about 30.5 times earnings.
Wall Street expects Nvidia to report quarterly results around August 26. Analysts are forecasting EPS of $2.07, up from $1.04 a year earlier, on revenue of $91.70 billion versus $46.74 billion in the prior-year period.
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