Nvidia (NVDA) Stock May Start a Rebound Soon

Nvidia shares could benefit from strong results and the decline in long rates to rebound

Nvidia (NVDA) stock may soon start a rebound as the results of its Taiwanese competitor, TSMC, came out well above expectations, which bodes well for the entire semiconductor ecosystem. Taiwanese tech giant TSMC reported a 76.4% jump in second-quarter profits on Thursday, driven by buoyant demand for high-performance chips.

Nvidia shares could also benefit from the fall in long rates after the latter reached a ceiling in June. Indeed, the end of the rise in long-term bond yields since the beginning of June is good news for the valuation of financial assets, in particular growth stocks, because the further away the cash flows are expected, the more the rates influence their discounted value. . As proof, the Nasdaq Composite has already started to outperform the traditional American values ​​of the NYSE since mid-June, after having underperformed the first six months of the year in the face of soaring bond rates.

Nvidia (NVDA) stock price daily chart – key levels

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