Nvidia (NASDAQ:NVDA) is one of the top-trending stocks on social media after NVDA stock climbed 4.15% yesterday, enabling it to notch an all-time closing high. As a result, the stock’s market capitalization is now over $1.2 trillion.
The rally came after the shares pulled back in the preceding days, even though the firm reported significantly better-than-expected second-quarter results last week.
Also noteworthy is that Nvidia announced a new, artificial intelligence (AI) oriented partnership with Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) yesterday, while well-respected analyst Dan Ives predicted that tech stocks would surge for the rest of 2023.
One week ago, NVDA reported blowout Q2 results. The shares initially rallied, but on Aug. 28, they had fallen to $448.88 from their post-earnings high of $502.66.
Yesterday NVDA closed at $487.84.
Nvidia’s Alliance With Alphabet and Ives’ Bullish Note
Yesterday the chipmaker unveiled a partnership with Alphabet’s Google Cloud. The deal will make it easier for Google Cloud’s customers to utilize AI, which is created using Nvidia’s chips.
According to TheStreet, the deal “should” lift Nvidia’s top line going forward.
Meanwhile, Dan Ives, an analyst at investment bank Wedbush Securities, predicted that tech stocks, powered by optimism about the positive impact of AI, would climb for the remainder of 2023.
Ives didn’t name NVDA as one of the beneficiaries of the rally he forecasts, focusing instead on Amazon (NASDAQ:AMZN), Alphabet, and Meta (NASDAQ:META).
However, it’s difficult to believe that NVDA stock would not climb significantly during a tech rally powered primarily by bullishness on AI.
The Longer-Term Price Action of NVDA Stock
NVDA stock has surged 21% in the last three months and 234% so far this year.
Today, NVDA stock dipped a bit after the markets opened but is now up about 0.7%.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
