Nvidia rallied Tuesday, lifting the broader semiconductor index above the flatline, after short-seller Citron Research said it had snapped up the chipmaker's shares, citing a favourable valuation.
Citron Research said in tweet that it had taken a long position in Nvidia (NASDAQ:NVDA), sending the company's shares soaring more than 4%.
"This is the first time in two years [that the] stock offers an appealing risk-reward to investors," Citron Research said.
Citron's upbeat outlook on Nvidia marked a change of heart from an earlier note in August, when the research firm detailed 10 reasons why Nvidia would drop to $200 stock by April 2019.
Nvidia reported mixed earnings last week and delivered a dour outlook on current quarter growth, blaming excess inventories, but Citron Research said the chipmaker "will eat through [its] inventory issue."
Advanced Micro Devices (NASDAQ:AMD), which has also been plagued by struggles shifting excess inventories, rose more than 1%.
Intel (NASDAQ:INTC), meanwhile, continued to be pressured by reports from a day earlier claiming that rival chipmaker Taiwan Semiconductor Manufacturing (NYSE:TSM) was set to land an order from IBM (NYSE:IBM) for server chips, which would help the company challenge Intel in the data center sector. Intel fell 0.5%.
The Philadelphia Semiconductor Index traded above the flatline.
