Nvidia stock rose more than 3% to 207.03 on Monday, climbing back above its 50-day moving average as chip stocks broadly wavered. Coherent and Entegris also advanced, while Monolithic Power Systems and NXP Semiconductors dropped after sharp Friday moves tied to earnings and acquisition news.
Nvidia stock climbed more than 3% to 207.03 in recent trades Monday, retaking a key support level. The advance pushed the stock back above its 50-day moving average line, according to IBD MarketSurge charts, after Nvidia found support at its 200-day line last week.
The gains came during a mixed session for chip stocks in the broader stock market, as the Philadelphia semiconductor index, known as SOX, struggled to hold its gains before rising just a fraction in afternoon trading. Even so, Nvidia ranked among the session's biggest SOX gainers, alongside Coherent and Entegris.
Elsewhere on the index, Monolithic Power Systems fell nearly 6% to 1,345.98 in afternoon trading, reversing course after Friday's beat-and-raise second-quarter report, released late Thursday. The stock had jumped as high as 1,568.21 on Friday, up 19.1% intraday, before retreating to close up 8.4% at 1,426.03. Monolithic continues to benefit from the buildout of data centers for artificial intelligence, as does Nvidia, the AI-chip leader.
NXP Semiconductors also declined, dropping more than 3% to 220.39 in afternoon trading Monday and extending a slide that began Friday, when the stock had plunged 6.5% after the Financial Times reported the company was considering an acquisition of Ambarella. Nvidia, Coherent, and Monolithic all remain on the IBD Tech Leaders list.
Source: Investor's Business Daily
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