Artificial intelligence stocks Nvidia (NVDA) and Arista Networks (ANET) lead this weekend’s watch list of five stocks near buy points. In addition to NVDA stock and ANET, the group includes Datadog (DDOG), whose computer-network monitoring software business should get a boost from AI adoption.
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Credit-card processing giant Mastercard (MA) and DexCom (DXCM), a leader in glucose-monitoring systems for diabetes patients, round out the list.
DDOG stock is part of the flagship IBD 50 list of leading growth stocks, while NVDA is part of the IBD Leaderboard portfolio of elite stocks.
For now, the powerful stock market rally remains intact, after Wall Street dodged a possible bullet in Friday’s jobs report. A big downshift in private-sector job growth, which helped corral the surging 10-year Treasury yield, should keep the Fed from panicking about the inflation outlook.
Nvidia and these other stocks have been moving sideways in recent days or weeks, largely because the overall market has been rangebound since mid-June. So be sure to read IBD’s The Big Picture every day to stay in sync with the market direction and what it means for your trading decisions.
Nvidia Stock
NVDA stock ranks as the top S&P 500 gainer this year, up 191%, thanks in no small part to its blockbuster guidance on May 24 as it ramps up to meet massive demand for its AI-enabling chip technology.
Nvidia forecast Q2 sales of $11 billion, up 64% year over year, obliterating Wall Street’s consensus estimate of $7.2 billion.
NVDA stock leapt 24% in the next session and has continued to push higher. That’s despite news in late June that the Biden administration is moving toward tougher restrictions on AI-enabling chips to China.
Yet even amid that negative news, NVDA stock has hung tough. In each of the past three weeks, NVDA stock has moved up or down less than 1.5%, etching out a four weeks-tight pattern. That establishes a new buy point, if NVDA stock clears the top of the 439.90 range. Investors could use Friday’s high of 432.14 as an early entry.
Still, a more constructive entry for…
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