Why Roku And Nvidia Are Trading Higher Today

Mega-cap tech stocks Roku ROKU and Nvidia NVDA both opened up and are trading higher today.

Nvidia is continuing a strong week, with shares trading 6% higher on the week. The stock opened at $716 Monday morning and is currently trading at $764. On the strong technicals, many big options orders are coming in and buying calls. According to Benzinga Pro, there are much more calls being placed by big options traders than puts.

Bank of America raised its price target for Nvidia to a whopping $900 a share. The stock traded sideways for much of 2021, but now is breaking out with no ceiling in sight.

Similarly, shares of Roku are trading up more than 8% from the stock's close on Wednesday. Today, the stock is trading up more than $14 a share, or 4.2%. The company announced Friday that between the period of May 20 and June 3, a record number of customers streamed using the Roku platform.

Like Nvidia, many options traders are placing large call bets on Roku. Unlike Nvidia, Roku's stock is trading down about 20% from its all-time highs in February. Nvidia's stock is currently at or near all-time highs.

Both tech companies have been growth-stock favorites among investors for the past couple of years. Nvidia's bull case is that the company's technology will span much further than just in gaming computers– AI, robotics and self-driving cars.

Roku's bull case is based in the fact that not only are people using Roku sticks to stream different platforms, but many new smart TVs also come pre-installed with Roku's software, making it a staple for users no matter what streaming service they're using.