Why Nvidia Shares Are Climbing Premarket Today

Nvidia Corp. (NASDAQ: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.

See Also: Best Artificial Intelligence Stocks