Nvidia shares rose over 2.5% on Friday, clearing the record high it set in May and breaking through a resistance level that had turned back buyers on past attempts. The move followed Morgan Stanley's decision to reinstate Nvidia as its top semiconductor pick and came days after the company announced $150 billion in additional buyback firepower.
Nvidia climbed past its own ceiling on Friday, with shares up more than 2.5% and trading at record levels for the first time since mid-May. The breakout ended several failed attempts to clear the same level.
Stock finally clears its May peak
The chipmaker had, on a few occasions, come within a few dollars of its May intraday peak of $236.54, only for sellers to step back in each time. On Friday, the stock finally punched through it. According to CNBC's Jim Cramer, the move breaks the double top: "Very important. Breaks the double top."
Morgan Stanley reinstates its top pick
Morgan Stanley reinstated Nvidia as its top pick in semiconductors, a call that followed client meetings with Nvidia CEO Jensen Huang and CFO Colette Kress. Jim Cramer noted the firm's track record on these stocks.
Buyback adds to the bull case
The rally also builds on $150 billion in additional buyback firepower Nvidia announced Monday. Nvidia's advance came as the Nasdaq climbed over 1.5% to a fresh record, lifted by falling oil prices and a soft September jobs report that eased pressure on bond yields and gave the Federal Reserve more room to hold rates steady at its October meeting.
Source: CNBC
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