Nvidia (NVDA) is a giant in data centers and gaming, with AI chips a growth opportunity. Is Nvidia stock a buy after nearly doubling so far this year?
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Semiconductor, AI News
On May 1, Evercore analysts called Nvidia a “top pick” in a note to clients. Rosenblatt Securities analysts also named NVDA among seven chip stocks that could benefit from higher tech spending around artificial intelligence (AI).
In March, chipmaker Nvidia announced various initiatives to broaden its reach in AI, including partnerships and new products.
In February, Nvidia delivered a beat-and-raise report driven by its data center segment, which includes 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 deep dive into NVDA stock.
Nvidia Stock Technical Analysis
On May 1, Nvidia stock topped a 281.20 buy point from a three-weeks-tight pattern. Shares popped 4% to 286.80 May 5, still within buy range, which goes to 295.26.
IBD named Nvidia its Stock of the Day on May 1 as the chipmaker broke out. Investors could use the latest Nvidia breakout to start a small position or to grow an existing stake. However, the current market trend warrants a cautious approach to investing.
The chip stock earns a spot on the prestigious IBD Leaderboard. In April, NVDA stock hit the 20% profit-taking goal from a previous breakout.
Year to date, Nvidia shares are up 96.25% after crashing in 2022.
NVDA earns an IBD Composite Rating of 97. In other words, Nvidia stock has outperformed 97% of all other stocks in IBD’s database in terms of combined 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 made a new high May 1 as the semiconductor stock broke out.
The RS line is almost back near November 2021 highs, the IBD MarketSmith charts show. A rising RS line…
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