Nvidia stock hits fresh buy point

Nvidia stock hits fresh buy point
Nvidia stock hits fresh buy point

Nvidia stock has hit a new buy point.

has hit a fresh buy point at 141.90, rising above the 50-day moving average on Friday, amid significant buzz generated by the CES 2025 conference. The stock has formed an early buy point, with another key buy point at 146.54.

On Monday, Nvidia’s Chief Executive Officer Jensen Huang will deliver the keynote address at CES 2025, scheduled for 6:30 p.m. Nvidia will showcase its innovations in artificial intelligence, gaming, and automotive markets from Tuesday through Friday. Investors will be closely watching for details about its upcoming graphic processing units and the successor to its Blackwell chip. Goldman Sachs reported that the AI revolution is moving into software and services, a domain where Nvidia has a competitive edge due to its in-house software expertise.

Bank of America analyst Vivek Arya highlighted Nvidia’s strategic advantage, describing it as a “generational opportunity.” Nvidia is also well-positioned to handle higher interest rates in 2025 due to its high profit margins, according to the XTB research director. However, Nvidia has faced some challenges recently. After reaching an all-time high of 152.89 in October, the stock faced increased competition and concerns over tariffs and the ramp-up of the Blackwell chip, causing it to dip below the 50-day line in December.

See also  Y Combinator funds unexpected weapons startup

Despite these concerns, there are signs of renewed investor interest. The stock gained nearly 4% on Dec. 20 after Morgan Stanley analyst Joseph Moore named Nvidia a “top 2025 pick,” although he trimmed his price target to 166 from 168.

Moore anticipates that the slowdown in Nvidia’s older Hopper chip will offset the availability of high-end memory chips for its Blackwell line.

Nvidia stock finds fresh momentum

Mizuho analyst Jordan Klein noted that while custom silicon chips will gain market share, Nvidia’s GPUs, versatile across various AI tasks, remain in strong demand.

Nvidia was the most bought stock by retail investors in 2024, with nearly $30 billion invested, highlighting its market appeal. Broadcom poses competition with its data center AI networking gear. On Dec. 12, Nvidia shares fell after Broadcom reported that two large customers are developing next-generation AI processors with its chips. Moreover, Nvidia disclosed that one customer accounted for 13% of its fiscal first-quarter revenue, exposing it to client demand fluctuations. Earlier reports also indicated that the U.S. Supreme Court dismissed Nvidia’s appeal in a securities fraud lawsuit from shareholders.

Despite semiconductor market fluctuations and geopolitical concerns, Nvidia’s strong earnings growth and market leadership in AI give it a robust outlook. Analysts project significant revenue and earnings growth for Nvidia, with FactSet data ranking it first among S&P 500 companies for revenue and earnings growth estimates through 2026. Third-quarter results were strong, with sales hitting $35.08 billion and earnings at 81 cents per share, surpassing FactSet estimates.

This performance indicates Nvidia’s resilience and market potential despite broader market challenges. Nvidia remains a must-watch stock due to its AI leadership, significant market interest, and strong financial projections. Investors should monitor its performance amid CES 2025 announcements and broader market trends to gauge if Nvidia remains a strong buy in the evolving tech landscape.

See also  Microsoft acquires carbon credits from new biochar facility

Adria Woodman

More Stories