Nvidia Stock Has Nearly Tripled In 2023 On AI Boost — Is It A Buy?

Nvidia (NVDA), a giant in data centers and gaming, continues to sizzle. The chip giant is seen as one of the biggest winners of the AI boom. Is Nvidia stock a buy right now?


Semiconductor, AI News

On May 30, Nvidia Chief Executive Jensen Huang announced a new supercomputer, software and services for generative AI (artificial intelligence). Generative AI can create content, including written articles, from simple descriptive phrases by analyzing and digesting vast amounts of data. It can also write computer programming code.

For its latest quarter, graphics-chip maker Nvidia crushed Wall Street’s targets on record data-center sales. Production is ramping up to meet huge demand for AI technology, CEO Huang said.

Nvidia is a leader in AI chips. In the tech industry’s fierce battle for AI dominance, the advanced chips needed for generative AI, such as the ChatGPT chatbot, are key.

For those looking for top large-cap stocks to buy now, here’s a dive into NVDA stock.

Nvidia Stock Technical Analysis

The chip stock cleared a 419.38 buy point from a three-weeks-tight pattern in June, with an early entry around 400. That offered a place for existing investors to add a few more shares. Technically, NVDA is still in range, with the buy zone going to 440.35.

Shares pegged a 52-week high of 439.90 on June 20.

Nvidia stock rocketed in May on blowout earnings and strong guidance. NVDA had joined the IBD Leaderboard in February after an earnings gap-up.

Year to date, Nvidia stock has skyrocketed 195%, after crashing in 2022.

A main risk is that Big Tech stocks have run up so much and so fast that a pullback is likely. So far, Nvidia is holding up well.

NVDA earns an IBD Composite Rating of 99, the highest possible score. In other words, Nvidia stock is in the top 1% of all stocks in terms of technical and fundamental metrics.

Investors generally should focus on stocks with Comp Ratings of 90 or even 95 and above. Nvidia stock often earns a spot on the IBD 50, Big Cap 20 and Sector Leaders lists.

The relative strength line is striking fresh highs, the IBD…


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