Nvidia stock soars by 6% after Goldman Sachs declares it ‘Stock of the Year’

Key Points

• Nvidia shares surged over 6 per cent on Tuesday after Goldman Sachs strategist Scott Rubner identified it as the “most important stock” of 2024.
• Rubner predicted that Nvidia’s upcoming earnings report and the Federal Reserve’s Jackson Hole Economic Symposium could trigger a broader stock market rally.
• The strategist suggested that markets could see a ‘super clean’ positioning by early September, setting the stage for a potential Labour Day rally.
• However, Rubner also warned of potential volatility in the second half of September before new highs are reached in the fourth quarter of 2024.

Nvidia (NVDA) experienced a significant surge in its stock price on Tuesday, jumping over 6 per cent, following a bold declaration by Goldman Sachs strategist Scott Rubner, according to Investopedia.

Rubner, who has a keen eye on market trends, labelled Nvidia as the “most important stock” to watch in 2024, a statement that immediately caught the attention of investors.

Rubner’s bullish outlook hinges on two upcoming events: Nvidia’s earnings report, scheduled for August 28, and the Federal Reserve’s Jackson Hole Economic Symposium.

According to Rubner, these events could serve as catalysts for a broader market rally, with Nvidia potentially leading the charge. He suggested that Nvidia’s earnings could be a turning point, marking the “technical low for the largest index weights and AI darlings” and setting the stage for a September rally.

Markets Poised for a Labour Day Rally

Rubner outlined a scenario where the market could experience a “super clean” positioning as September approaches, creating a prime opportunity for a Labour Day rally. He advised investors to consider buying the dip as technical pressures ease, particularly in the wake of Nvidia’s earnings.

However, Rubner also offered a note of caution. While he sees potential for gains in early September, he warned that the second half of the month could be “tricky” for investors. This period of volatility, influenced by the approaching U.S. presidential election, might pose challenges before the market resumes its upward trajectory, culminating in new highs by the fourth quarter of 2024.

Nvidia’s impressive performance on Tuesday, with shares closing 6.5 per cent higher at $116.14, reflects growing investor confidence in the company’s prospects. The stock’s rally has helped recover some of the losses it sustained earlier in the month, and with Tuesday’s gains, Nvidia has more than doubled in value since the beginning of the year.

As Nvidia prepares to release its earnings later this month, all eyes will be on whether the chipmaker can deliver results that justify its soaring stock price and Rubner’s high praise. If the company meets or exceeds expectations, it could solidify its position as a market leader and further fuel the anticipated September rally.

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