On a day when the market is scared to death, and people are screaming that the end is nigh, Nvidia (NASDAQ:NVDA) was up 4.28%.
This was on no real news.
Nvidia has fallen from its 52 week high of $39.67 to a recent $8.80. It closed today at $10.00. Can it be inferred from this strong counter trend move that they are “in play?”
Maybe. Nvidia has had its share of problems lately. They have had issues with some of their chipsets, which required them to take large charges; are facing increased competition from AMD and Intel; and economic conditions are not favorable.
That being said, Nvidia has no debt, a strong cash position, and a history of producing innovative and desirable products.
This could be a case where a number of investors are recognizing an apparent value, but it seems odd to push the price up on a day when virtually everything is going down. More likely, news of a potential merger has leaked out.