TLDR
- Nvidia stock is up about 1% in pre-market trading after dropping more than 6% over the past month
- J.P. Morgan reiterated an Overweight rating and called the recent pullback a buying opportunity
- The bank believes the market has overreacted to short-term volatility in the stock
- Strong AI chip fundamentals and long-term data center demand support the positive outlook
- The stock remains below its recent highs despite the morning rebound
Nvidia shares are climbing in pre-market trading, up roughly 1% as traders show renewed optimism about the chip giant’s prospects. The move comes after a rough stretch that saw the stock fall more than 6% over the past month.
The rebound follows a vote of confidence from Wall Street. J.P. Morgan reiterated its Overweight rating on Nvidia and told investors the recent dip presents a buying opportunity.
The bank’s analysts argue that market reaction to short-term price swings has been overblown. They point to strong fundamentals in the AI chip sector as reason to stay bullish.
Nvidia has been riding the AI wave for months now. The company’s graphics processing units have become essential hardware for companies building artificial intelligence systems.
But even high-flying stocks hit turbulence. The recent pullback had some investors questioning whether Nvidia’s rally was running out of steam.
Wall Street Weighs In
J.P. Morgan isn’t backing down from its positive stance. The bank cited long-term data center demand as a key factor supporting its view.
Data centers need powerful chips to handle AI workloads. Nvidia has positioned itself as the go-to supplier for these critical components.
The bank’s call appears to be resonating with traders. Pre-market activity shows buyers stepping back in after the month-long slide.
Short-term catalysts are also helping drive the rebound. Renewed optimism around AI demand and chip supply dynamics are putting wind back in the stock’s sails.
Supply chain concerns had weighed on sentiment recently. But traders seem more confident now that production and delivery issues are manageable.
Stock Still Below Recent Highs
Despite the morning bounce, Nvidia shares remain below their recent peak levels. The 6% decline over the past month has left some technical damage on the charts.
Valuation questions continue to linger as well. The stock trades at premium multiples compared to many tech peers.
Macro risks haven’t disappeared either. Interest rate concerns and broader economic uncertainty still hang over the market.
But for now, bulls are back in control of the narrative. The combination of Wall Street support and improved sentiment around AI is giving buyers reason to jump back in.
J.P. Morgan’s positioning of the dip as a buying opportunity seems to have struck a chord. The bank’s focus on AI chip fundamentals and data center demand provides a framework for investors looking past short-term noise.
Traders will be watching to see if the pre-market gains hold through the regular trading session. The stock’s ability to build on this morning’s strength could determine whether the recent pullback is truly over.
J.P. Morgan maintains its Overweight rating on Nvidia shares as of December 15, 2025.
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