Markets

Why NVIDIA Stock Rose 12% in April

What happened

NVIDIA (NASDAQ: NVDA) shareholders beat a booming market last month. Their stock rose 12% in April compared to a 5.2% spike in the S&P 500, according to data provided by S&P Global Market Intelligence.

The increase put the chip producer back in solidly positive territory in 2021 after having soared last year.

An engineer working on a semiconductor chip.

Image source: Getty Images.

So what

NVIDIA said during its annual investor conference on April 12 that its first quarter is off to a strong start, with sales tracking above the outlook that management issued in late February. Revenue should land above $5.3 billion, executives announced, which would translate into over 75% growth year over year.

Investors are also gaining more confidence that NVIDIA can soon start benefiting from higher manufacturing output even as it targets bigger semiconductor segments beyond the gaming niche.

Now what

NVIDIA is set to announce its first-quarter results on May 26. In addition to seeing over $5.3 billion in sales, investors will be watching for further signs of demand strength as the semiconductor company works to restock inventories in high-growth areas like data centers, gaming, automotive, and cryptocurrency mining. Yet the stock's rally might turn on the updated outlook that CEO Jensen Huang and his team issue for the second half of 2021.

10 stocks we like better than NVIDIA
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and NVIDIA wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of February 24, 2021

Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends NVIDIA. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

NVDA

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More