Please ensure Javascript is enabled for purposes of website accessibility

1 Reason Why Nvidia Stock Is Rising Today

By Chris Neiger - May 13, 2022 at 2:04PM

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

A tech rally helped push the GPU specialist's share price higher.

What happened 

Nvidia (NVDA 3.31%) shareholders were in for a pleasant surprise Friday as the semiconductor maker made significant gains. As of 1:05 p.m. ET, Nvidia's share price had surged by  9.8% as investors became more bullish about the market in general. The tech-heavy Nasdaq Composite was up by nearly 4% at that point in the session. 

So what 

There's no clear reason why the broader market -- and Nvidia's shares -- are rebounding Friday, but it's likely that after the pummeling that technology stocks have received over the past several months, some investors think the sector is ripe for a comeback. 

A semiconductor on a motherboard.

Image source: Getty Images.

Investors have been distancing themselves from high-growth technology stocks over the past six months as soaring inflation and a big shift in the Federal Reserve's fiscal policy have spurred fears of a potential economic slowdown. 

But investors appear to be shrugging off some of those concerns Friday, perhaps in the hope that tech stocks have nearly reached their bottom.

Now what 

The broader market's rally Friday -- and Nvidia's share price pop, too -- are great to see. But investors should stay clear-eyed about what's happening in the market. 

Investors, in general, have been digesting news of the first few interest rate hikes by the Federal Reserve in years, and they're also factoring in a series of upcoming rate hikes that will likely come throughout 2022 and 2023. With U.S. inflation at levels not seen in nearly 40 years, Americans are growing pessimistic, and even Fed Chairman Jerome Powell said Thursday that he can't guarantee the central bank's ability to engineer a so-called soft landing for the economy while it's striving to get inflation back in check. 

So while Nvidia's price bounce is great, long-term investors should be prepared for more oscillations from this tech stock

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
NVDA
$178.35 (3.31%) $5.71

*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 service.

Stock Advisor Returns
338%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

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.