Nvidia Catches a Bid on Wall Street Upgrade as Chip Stocks Soar

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Investing.com – Chip stocks surged for the second-straight day this week on Tuesday, spearheaded by a rise in Nvidia as Wall Street continues to tout companies with robust balance sheets and cash piles as a good place to weather the Covid-19-led macro uncertainty.

Needham analyst Rajvindra Gill upgraded Nvidia to buy from hold, citing the company’s superior balance sheet and robust free cash flow, sending Nvidia (NASDAQ:NVDA) up 14%.

With the coronavirus pandemic continued to widen, Gill said he expected demand for Nvidia’s GPUs to jump as healthcare companies ramp up the use of artificial intelligence.

Other semis also caught a bid, with Advanced Micro Devices (NASDAQ:AMD), Intel (NASDAQ:INTC) and Micron Technology  (NASDAQ:MU) up strongly, underpinning a 7% jump in the Philadelphia Semiconductor Index.