Nvidia (NVDA) concludes an exceptional year marked by unprecedented demand for its processors and artificial intelligence applications, propelling the stock to new heights. The company's stock, currently approaching a buy point of 505.48, forms a flat base and remains in the buy zone since breaking out of a double-bottom base on Nov. 9 at 476.09.
Year to date, Nvidia's stock has surged over 235%, driven by robust sales and earnings growth in two consecutive quarters. Cloud service providers and enterprises are key contributors, leveraging Nvidia's graphics processing units for generative AI applications.
Despite its success, Nvidia faces heightened competition in the AI chip market from rivals Advanced Micro Devices (AMD) and Intel (INTC), both launching their own AI accelerators.
In response to U.S. export controls targeting China, Nvidia introduces a modified version of its latest gaming chip, the GeForce RTX 4090 D, to comply with regulations. This move aims to address concerns that China's military might exploit advanced processors and AI technology. Nvidia is adapting by developing less-capable versions of its gaming cards and graphics processors for the Chinese market.
Nvidia's stock, currently trading at 495.22, is set to make announcements at the CES 2024 tech trade show on Jan. 8. The company holds a prominent position on three IBD stock lists: IBD 50, Leaderboard, and Tech Leaders. Additionally, it is part of the Magnificent Seven stocks that have significantly influenced the market's upward trajectory this year.
