Nvidia Corp. NVDA shares were higher in premarket trading on Tuesday following Monday’s 7% rally.
The positive sentiment reflects optimism over the uptake of its high-performance chips for AI software and applications.
On Monday, Morgan Stanley analyst Joseph Moore issued an upbeat commentary on the company’s second-quarter results due on Aug. 23 and also the near-term outlook.
The company’s AI chips are in huge demand the world over, especially in some Middle East nations which are establishing their own computational power, a Financial Times report said.
Daniel Loeb’s Third Point took a new position in Nvidia in the second quarter, 13F filed by the firm showed.
Nvidia stock could see a pre-earnings run-up in the absence of any major negative economic catalyst. Moore called for a beat-and-raise quarter from the company and recommended investors use the recent pullback to take a position in the stock.
In premarket trading, Nvidia rose 0.88% to $441.40, according to Benzinga Pro data.
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