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Why NVIDIA Stock Jumped Today

By Chris Neiger – Sep 9, 2020 at 3:32PM

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After a brief sell-off, investors are coming back to tech stocks.

What happened

Shares of NVIDIA Corporation (NVDA -1.51%) popped today as the tech sector rebounded after several days of losses. NVIDIA's stock jumped by as much as 7.5%, before settling slightly lower. 

As of 3:09 p.m. EDT, NVIDIA's stock was up 7%. 

So what

NVIDIA stock has skyrocketed over the past few months and is up 116% since the beginning of this year. NVIDIA's shares have climbed quickly as the broader market, and tech stocks, in particular, have risen after a steep market drop in March. 

An abstract stock chart with line graph on it.

Image source: Getty Images.

But tech stocks pulled back from some of their highs over the past few days. Between Sept. 2 and Sept. 8, the S&P 500 fell 5.5% as investors fled the tech sector. As a result, NVIDIA fell 13.8% over the same period. But investors appear to be coming back to tech stocks again, which is why NVIDIA is rising again today. 

Now what 

NVIDIA's stock is up an impressive 185% over the past 12 months, compared to the S&P 500's 15% gains. NVIDA's stock price jump today isn't the result of any company-specific news and investors should understand that the market is likely to continue acting in some unpredictable ways for a while. With the U.S. economy still reeling from the COVID-19 pandemic, investors can expect more market uncertainty in the near term.

Chris Neiger 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.

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