What Happened?
A number of stocks jumped in the morning session after strong results from chipmaker Nvidia eased lingering concerns about a potential bubble, especially in the tech sector.
The tech giant delivered another blockbuster earnings report, with sales, profits, and guidance exceeding Wall Street expectations. CEO Jensen Huang let the data do the talking as he acknowledged the growing sentiment about an AI bubble, while affirming that sales for Nvidia's current-generation GPU, called Blackwell (mostly used for AI applications), are "off the charts." A stronger-than-expected September jobs report from the Bureau of Labor Statistics reinforced this bullish sentiment. Nonfarm payrolls rose by 119,000, easily surpassing the consensus estimates of 50,000. While the unemployment rate ticked up to 4.4% and wage growth slowed slightly, the data suggest the U.S. economy remains on a firm footing. While this resilience made some investors unsure of the Fed's December rate decision, the market welcomed the news, rallying on the strength of a solid economy and a booming tech sector.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Engineering and Design Services company Sterling (NASDAQ: STRL) jumped 4.8%. Is now the time to buy Sterling? Access our full analysis report here, it’s free for active Edge members.
- Renewable Energy company SolarEdge (NASDAQ: SEDG) jumped 7.9%. Is now the time to buy SolarEdge? Access our full analysis report here, it’s free for active Edge members.
- Renewable Energy company Sunrun (NASDAQ: RUN) jumped 4.9%. Is now the time to buy Sunrun? Access our full analysis report here, it’s free for active Edge members.
- Home Construction Materials company JELD-WEN (NYSE: JELD) jumped 7.2%. Is now the time to buy JELD-WEN? Access our full analysis report here, it’s free for active Edge members.
- Electrical Systems company Powell (NASDAQ: POWL) jumped 5.8%. Is now the time to buy Powell? Access our full analysis report here, it’s free for active Edge members.
Zooming In On SolarEdge (SEDG)
SolarEdge’s shares are extremely volatile and have had 95 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 2.4% on the news that an analyst at UBS raised the firm's price target on the stock to $40 from $30. The adjustment represented a 33.33% increase in the price target. Despite the more optimistic valuation, the investment bank maintained its 'Neutral' rating on the shares. This suggested that while the firm saw more potential value in the stock, it was not signaling a strong recommendation to buy.
SolarEdge is up 127% since the beginning of the year, but at $33.64 per share, it is still trading 25.9% below its 52-week high of $45.38 from November 2025. Investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at an investment worth $130.42.
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