- Nvidia (NVDA), the AI chip leader, has retaken the 50-day moving average amid a rally ahead of earnings.
- Despite lighter volume, which indicates less support from institutional buyers, the stock is rebounding.
- Investors are now faced with the decision to continue holding or take some profits as Nvidia heads into its earnings report.
Nvidia retakes 50-day moving average ahead of earnings report; investors weigh options between holding or taking profits.
Nvidia’s Market Position and Recent Developments
Nvidia’s dominance in the AI market continues to be evident as it retakes the 50-day moving average. However, the lighter volume suggests less support from institutional buyers. The stock’s rebound has investors contemplating whether to hold or take profits, especially with the upcoming earnings report. Nvidia recently entered into an agreement to buy Run.ai for $700 million, a move that highlights the company’s roadmap and priorities in the AI sector.
Analysts’ Bullish Price Targets for Nvidia Stock
Following the March conference, UBS analyst Timothy Arcuri increased Nvidia’s target price to 1,100 from 800 while maintaining a buy rating. Truist analyst William Stein raised his price target on Nvidia stock to 1,177 from 911, anticipating stronger demand for Nvidia’s chips in 2024 and 2025. HSBC analysts also increased their price target to 1,050 from 880, maintaining a buy rating on the stock.
Nvidia’s Beat-And-Raise Fourth Quarter
Nvidia delivered another beat-and-raise quarter in February, with earnings of $5.16 a share on sales of $22.1 billion. The company also disclosed its recent stakes in several smaller artificial intelligence plays in a filing with the Securities and Exchange Commission.
Nvidia’s Blockbuster Results and AI Products Drive Growth
Nvidia’s current stock move traces back to late 2023 when shares broke out of a double-bottom base with a buy point of 476.09 in strong volume. The company’s AI-capable supercomputer paved the way for the “iPhone moment of AI,” turning the tide on its results. Worldwide AI chip revenue is set to grow 26% from $53.4 billion in 2023 to $67.1 billion in 2024, according to Gartner.
Top Ratings For Nvidia
Nvidia stock boasts a best-possible score of 99 on both its Composite Rating and EPS Rating. Its Relative Strength Rating of 98 also shows that it outperforms the vast majority of stocks in the Investor’s Business Daily database. Nvidia is also one of the stocks forecast to outperform the market in 2024.
Is Nvidia A Buy?
Despite its many positives, Nvidia stock is not a buy right now. The stock has retaken its 50-day moving average in light volume, which would be an entry only for aggressive traders. When it breaks out of its new base, it would offer a more confident entry.
Conclusion
While Nvidia continues to dominate the AI market, investors need to tread carefully. The upcoming earnings report and the stock’s current market position suggest a cautious approach. However, the company’s recent developments and bullish price targets from analysts indicate a promising future.
