Nvidia Corp. (NASDAQ:NVDA) shares are rallying in premarket trading on Wednesday, signaling that more gains could be in the offing after Tuesday's 6.76% jump.
In premarket trading, the stock rose 2.36% to $129.06, according to Benzinga Pro data.
Nvidia retreated nearly 13% over three sessions beginning on Wednesday last week after it hit a record high of $135.58 on Tuesday ahead of the Juneteenth holiday. Amid the pullback, some market strategists called for a reversal in sentiment until the release of the second-quarter results in late August.
The AI stalwart defied the pessimism and rebounded strongly on Tuesday. CNBC Mad Money host Jim Cramer sees the upside as the result of expected good news from memory chipmaker Micron Technology, Inc. (NASDAQ:MU), which is scheduled to report its results Wednesday after the close.
"Nvidia shakes off early sellers and is now ramping...," Cramer said in a post on X, formerly Twitter. "Remember only new information can bring this one back, Maybe that's what Micron will provide when it reports," he said.
Nvidia shakes off early sellers and is now ramping... Remember only new information can bring this one back, Maybe that's what MIcron will provide when it reports tomorrow.
— Jim Cramer (@jimcramer) June 25, 2024
Micron's earnings results are considered to be a litmus test for the AI rally that has propelled the broader market and tech sector so far in the current bull cycle.
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