Luminar Technologies (NASDAQ: LAZR) saw its stock surge by 20.7% in Monday’s trading, reaching this increase by 1:30 p.m. ET, against a backdrop of a 0.9% rise in the S&P 500 index and a 1.4% gain in the Nasdaq Composite index.
Luminar stock jumps 20.7% amid Nvidia optimism
The significant rise in Luminar’s stock is linked to a bullish momentum in the semiconductor sector. Investors are optimistic about potential announcements from Nvidia regarding its partnership with Luminar at the Consumer Electronics Show (CES) conference scheduled for tonight.
Nvidia’s stock also increased following a positive fourth-quarter report from Foxconn, a major client. Foxconn reported record revenue, primarily driven by demand for AI-related technologies. This performance highlights strong demand conditions for Nvidia, which in turn is contributing to broader optimism in the semiconductor industry, benefiting companies like Luminar.
Additionally, anticipation surrounds Nvidia CEO Jensen Huang’s keynote presentation at CES, set to begin at 9:30 p.m. ET. Investors expect updates on Nvidia’s automotive technology initiatives, which could include advancements involving Luminar’s lidar technologies, as the two companies aim to integrate these systems into autonomous vehicles.
Nvidia’s stock shows warning signs despite 177% yearly gain
Despite the current positive momentum, Luminar has faced significant volatility, with its share price down approximately 84% over the past year. If Huang mentions Luminar or lidar in his CES keynote, it could trigger further increases in the company’s stock value. However, past collaboration news between Luminar and Nvidia has been limited over the last year.
In its most recent quarterly report, Luminar’s revenue fell 8.6% year over year to $15.5 million. The company’s valuation, currently seen as beaten down, opens the possibility for substantial upside if new positive catalysts emerge, though its recent performance trajectory indicates a high level of risk for investors.
Investors are banking on Jensen Huang dropping some magic words like “lidar” or “Luminar” tonight. If he does? Boomtown.
But let’s not forget: this stock’s down 84% this year for a reason. Revenue dropped, and past Nvidia collabs didn’t exactly move mountains. This pop could be a short-lived sugar rush unless CES delivers big. Risk-tolerant traders only—don’t chase the green without a parachute.
Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.
Featured image credit: Luminar
