Nvidia stock rises as chip sector recovers from Friday drop

Nvidia Corp stock rose 1.5% in morning trading on Monday to reach $207.69, recovering alongside the broader semiconductor sector after a sharp decline on Friday. The previous session's drop was triggered by Intel Corp's weak fourth-quarter revenue and earnings guidance, which pressured chip stocks across the sector.

Investors are now reassessing whether Intel's challenges apply to Nvidia's business model, which is focused on artificial intelligence. Melius Research maintained its Buy rating on Nvidia on Monday, though the firm reduced its price target. Morgan Stanley's analyst also kept a Buy rating on the stock, showing that Wall Street's consensus view on Nvidia remains positive.

Steve Weiss of Short Hills Capital Partners said he sold most of his Nvidia holdings. Weiss cited concerns that spending on AI infrastructure may be approaching a peak.

You May Also Be Interested In

• Aletheia Capital Reiterates Sell Rating on Apple (AAPL), PT $250, 'we expect both gross and operating margins to contract'
• EverQuote (EVER) PT Raised to $35 at B.Riley, 'we continue to find the risk/reward attractive'
• Citi Adds Petrobras (PBR) to 30-Day Upside Catalyst Watch List