Nvidia stock (NVDA) climbed more than 6% Thursday along with other chip stocks as tech led a sharp market comeback.

The rebound came a day after shares of the AI chip heavyweight fell more than 5% along with other semiconductor names.

As of Thursday, Nvidia has shed more than $750 billion in market cap since its June peak as the stock has declined roughly 25% amid worries that the AI trade has run out of steam, and growing concerns over the US economy.

On Wednesday, a bullish note from Piper Sandler pointed investors to a "tremendous opportunity" to buy the AI chip maker and other semiconductor names following sector's recent sell-off.

Analysts have shrugged off a recent report of a possible delay in Nvidia's next-generation chip called Blackwell.

"We still sense an urgent demand across the board, and that mitigates the risk in a pause in shipments as customers wait for the next generation of chips to be available in volumes," New Street Research technology infrastructure analyst Antoine Chkaiban told Yahoo Finance on Thursday.

Big Tech's increased spending on data center infrastructure is keeping Wall Street optimistic. More than 40% of Nvidia’s revenue comes from Microsoft, Meta, Alphabet, and Amazon, according to Bloomberg analysis.

"I think that for 2025... things are fairly well set," said Chkaiban. "We know roughly how much they [hyperscalers] expect to grow cap-ex. Plans are already set."

The analyst recently raised Nvidia to a Buy rating with a price target of $120.

Advanced Micro Devices (AMD), Broadcom (AVGO), and Intel (INTC) all closed more than 5% higher on Thursday.

Chip stocks have remained volatile over the past few weeks as Big Tech names have led the recent market downturn.

Nvidia stock fell more than 6% on Monday as the "Magnificent Seven" stocks saw market cap losses of more than $650 billion during Monday's market plunge.

Shares have regained some of those losses. Over the past four trading sessions the stock is down roughly 2%.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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