From Investor’s Business Daily: 2024-12-24 10:07:22

Nvidia stock hit a key level on Tuesday, breaking out at the buy point of 140.76 in October and reaching an all-time high of 152.89. Investors await CEO Jensen Huang’s remarks at the CES conference on Jan. 5 and Nvidia may reveal its GB300 Blackwell AI server at the GTC Conference in March. Shares rose 4% after a Morgan Stanley analyst named it a top pick but trimmed the price target to 166 from 168. The analyst expects no delays in Blackwell chip production and sees a shift back to GPUs from ASICs.

Broadcom’s strong AI processor demand affected Nvidia shares, but Broadcom competes with Nvidia in AI networking gear. Nvidia stock rose after Fed Chair Powell signaled fewer rate cuts and Citi analyst Malik highlighted Nvidia’s advantages over ASICs. Nvidia’s CoWoS foundry capacity is expected to grow to 60% in 2025, showing continued GPU momentum.

Investors are on watch mode for Nvidia due to Microsoft’s lack of chip supply constraints and ongoing legal issues. Nvidia’s earnings growth is strong, with an EPS rating of 99 and a Composite Rating of 98. Nvidia ranks first among S&P 500 companies for revenue and earnings growth estimates through 2026. Third-quarter results beat estimates, with sales nearly doubling from the previous year.

AI chip demand remains high, with strong AI data center spending benefiting Nvidia. Analysts project bullish trends for AI hardware and software, with demand for Nvidia’s products expected to grow significantly. Nvidia has fixed design flaws in its next-gen chip and is a stock market leader in AI technologies. Chart signals and technical measures suggest waiting for a new base before buying Nvidia stock.

Nvidia’s AI products continue to drive growth, with applications in various industries. The company has seen record growth in recent quarters after overcoming declines. Analysts believe sustainability is a key question for Nvidia’s growth, but the stock continues to perform well in the market. Investors should consider chart signals and technical measures before deciding if Nvidia stock is a buy.



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