There is a bull run in the stock of the company

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After a big run to start the year, Nvidia’s (NASDAQ:NVDA) stock looks to have stalled.
In the last month, NVDA stock has dipped 5%.
The current dip is likely only a temporary breather before NVDA stock again runs flat out.
The company’s influence on the market is growing and the main catalyst for NVDA stock continues to be the company’s earnings.
Since last summer, the stock market literally pauses in the days ahead of Nvidia’s earnings reports.
Nvidia is continuing to pull out all the stops to stay ahead of its competitors and ensure that its earnings run at a blistering pace.
Buy NVDA Stock Nvidia currently controls about three-quarters (75%) of the AI chip market worldwide.
If anything, Nvidia’s market share is likely to increase as it begins to deliver its Blackwell series of microchips later this year.

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Nvidia’s (NASDAQ:NVDA) stock appears to have stopped rising after a strong run to start the year. However, be at ease. Presumably, the chipmaker’s rally won’t last for very long.

NVDA’s stock has dropped 5% during the past month. The stock has had difficulty rising above $950 per share, and each time it has done so, it has fallen. Nonetheless, Nvidia had a tremendous run in January and February prior to this current retreat. The stock is leading the SandP 500 index and has increased by 83% year to date. Presumably, this current dip is just a short-term respite before NVDA stock surges higher once more. Therefore, buying the dip would be wise for investors.

Profits at Blockbuster.

Nvidia has achieved several significant milestones as a result of the stock market rally that started in earnest at the beginning of 2023. After Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), Nvidia is currently the third-largest publicly traded company in the world with a market capitalization that has crossed the $2 trillion threshold earlier this year. Profits remain the primary driver of NVDA stock, and the company’s impact on the market is only increasing.

The days before Nvidia releases its earnings reports have seen a real halt in the stock market since last summer. It seems like traders and investors are holding their collective breath to see if the company can live up to the high standards that have been set for it. As of now, Nvidia has not let the market down, and when the company exceeds Wall Street’s projections, the whole market rises. Nvidia, a manufacturer of semiconductors and microchips, revealed earnings for the last quarter of 2023 in February. These results stunned analysts and revealed the company’s incredible growth.

Thanks in large part to the persistent demand from artificial intelligence (AI) companies worldwide for its microchips and semiconductors, Nvidia announced that its Q4 2023 sales increased 265 percent year over year and its profits increased 769 percent from the previous year. Every metric exceeded the projections of the analysts, and the guidance was even more impressive. Nvidia predicted $24 billion in sales for the first quarter of the year, which ended just now. Should that happen, sales of $7.19 billion from the previous year would have increased by 234 percent. Is there any reason to doubt Nvidia’s ability to succeed going forward?

Staying on Course.

Since the company’s competitors are only becoming more formidable, the key question on Wall Street regarding Nvidia is how long the company can sustain exceeding the extremely high expectations that have been set for it. Perhaps Nvidia won’t be able to meet the expectations placed on it for earnings at some point, and then the stock will plunge. Nvidia is keeping up the ante to keep one step ahead of its rivals and maintain a rapid growth in earnings.

During an event for developers, Nvidia revealed its next generation AI microchips in March. The first of these new chips, the GB200, is dubbed the Blackwell series and is the most potent technology offered by the company to date. The new GB200 chip, specifically, has what Nvidia refers to as a “transformer engine” that is intended to run transformer-based artificial intelligence (AI), which is one of the fundamental technologies underlying chatbots like GPT-4. Companies like Microsoft and Meta Platforms (NASDAQ:META) have already placed sizable pre-orders with Nvidia.

Invest in NVDA stock.

About 75% of the global market for AI chips is presently held by Nvidia. No indications suggest that dominance will wane. More likely, Nvidia’s market share will rise when it starts shipping its Blackwell series of microprocessors later this year. Over the past 18 months, the company’s stock and earnings have generated enormous gains, and there’s every reason to think that the growth will continue. In the end, Nvidia possesses the knowledge and the tools necessary to continue leading the AI revolution. NVDA stock is a good buy because of this.

As of the publication date, Joel Baglole had long holdings in AAPL, MSFT, and NVDA. Subject to the InvestorPlace.com Publishing Guidelines, the author’s opinions are expressed in this article.

Joel Baglole has twenty years of experience covering business. He has written for The Washington Post, Toronto Star, and The Motley Fool in addition to financial websites Investopedia and The Wall Street Journal, where he worked as a staff reporter for five years.

semiconductor-based technology.

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