NVDA Stock Price: Nvidia surges on positive cloud computing industry report

NASDAQ:NVDA gained 7.49% during Wednesday’s trading session.
Keybanc released a report on the current cloud computing environment.
The ongoing cryptocurrency bubble is adding volatility to NVIDIA’s stock.

Stocks Reporter FXStreet

NASDAQ:NVDA finally had its breakout day alongside the rest of the market as the bleeding seems to have temporarily stopped. Shares of the semiconductor giants surged by 7.49% on Wednesday and closed the tumultuous trading session at $304.59. It was a day of redemption for the markets as investors paused in the morning in anticipation of Federal Reserve Chairman Jerome Powell’s speech. Powell delivered a structured timeline for the Fed’s plans for rate hikes, which seemed to be enough for investors to buy up the dip. The NASDAQ soared into the close gaining 2.15%, while the S&P 500 jumped by 1.63%, and the Dow Jones added back 383 basis points.

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Another day, another report on an industry that directly relates to NVIDIA’s bottom line. On Wednesday, Keybanc released a report on the state of the cloud computing industry. The month of November provided a strong measure of demand for cloud computing services, which is something that certainly benefits NVIDIA and its products. While the analyst that released the report highlighted the success of AMD (NASDAQ:AMD) and Intel (NASDAQ:INTC), perhaps investors took this opportunity to scoop up some beaten-down shares of NVIDIA. This combined with the afternoon market rally, seemed to catapult the stock higher into the closing bell.

Nvidia stock forecast

Another factor that has been causing the recent weakness in NVIDIA’s stock is the ongoing pullback in the cryptocurrencies market. Why would cryptos affect NVIDIA? Because the company offers products such as its RTX GPUs which are used in the mining of cryptocurrencies like Bitcoin and Ethereum. Volatility in the markets could certainly have an impact on the demand for these products, which have had an effect on NVIDIA’s bottom line in the past, specifically during the 2018 crypto boom and bust cycle.

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Stocks Reporter

FXStreet

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