Please ensure Javascript is enabled for purposes of website accessibility

Why NVIDIA Stock Rose 12% in April

By Demitri Kalogeropoulos - Updated May 4, 2021 at 8:27AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The growth outlook is getting brighter.

What happened

NVIDIA (NVDA -4.20%) 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NVIDIA Corporation Stock Quote
NVIDIA Corporation
$145.23 (-4.20%) $-6.36

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.