QQQ   444.02 (-0.36%)
AAPL   175.10 (-2.54%)
MSFT   414.92 (-0.14%)
META   498.19 (-0.82%)
GOOGL   133.35 (-2.76%)
AMZN   177.58 (-0.36%)
TSLA   188.14 (-7.16%)
NVDA   852.37 (+3.60%)
NIO   5.35 (-7.44%)
AMD   205.36 (+1.34%)
BABA   72.00 (-3.51%)
T   16.80 (-1.06%)
F   12.74 (+2.33%)
MU   95.77 (+0.65%)
CGC   3.02 (-5.92%)
GE   161.04 (+1.51%)
DIS   113.69 (+1.55%)
AMC   4.32 (-0.92%)
PFE   25.89 (-2.63%)
PYPL   59.98 (-0.93%)
XOM   104.36 (-1.40%)
QQQ   444.02 (-0.36%)
AAPL   175.10 (-2.54%)
MSFT   414.92 (-0.14%)
META   498.19 (-0.82%)
GOOGL   133.35 (-2.76%)
AMZN   177.58 (-0.36%)
TSLA   188.14 (-7.16%)
NVDA   852.37 (+3.60%)
NIO   5.35 (-7.44%)
AMD   205.36 (+1.34%)
BABA   72.00 (-3.51%)
T   16.80 (-1.06%)
F   12.74 (+2.33%)
MU   95.77 (+0.65%)
CGC   3.02 (-5.92%)
GE   161.04 (+1.51%)
DIS   113.69 (+1.55%)
AMC   4.32 (-0.92%)
PFE   25.89 (-2.63%)
PYPL   59.98 (-0.93%)
XOM   104.36 (-1.40%)
QQQ   444.02 (-0.36%)
AAPL   175.10 (-2.54%)
MSFT   414.92 (-0.14%)
META   498.19 (-0.82%)
GOOGL   133.35 (-2.76%)
AMZN   177.58 (-0.36%)
TSLA   188.14 (-7.16%)
NVDA   852.37 (+3.60%)
NIO   5.35 (-7.44%)
AMD   205.36 (+1.34%)
BABA   72.00 (-3.51%)
T   16.80 (-1.06%)
F   12.74 (+2.33%)
MU   95.77 (+0.65%)
CGC   3.02 (-5.92%)
GE   161.04 (+1.51%)
DIS   113.69 (+1.55%)
AMC   4.32 (-0.92%)
PFE   25.89 (-2.63%)
PYPL   59.98 (-0.93%)
XOM   104.36 (-1.40%)
QQQ   444.02 (-0.36%)
AAPL   175.10 (-2.54%)
MSFT   414.92 (-0.14%)
META   498.19 (-0.82%)
GOOGL   133.35 (-2.76%)
AMZN   177.58 (-0.36%)
TSLA   188.14 (-7.16%)
NVDA   852.37 (+3.60%)
NIO   5.35 (-7.44%)
AMD   205.36 (+1.34%)
BABA   72.00 (-3.51%)
T   16.80 (-1.06%)
F   12.74 (+2.33%)
MU   95.77 (+0.65%)
CGC   3.02 (-5.92%)
GE   161.04 (+1.51%)
DIS   113.69 (+1.55%)
AMC   4.32 (-0.92%)
PFE   25.89 (-2.63%)
PYPL   59.98 (-0.93%)
XOM   104.36 (-1.40%)

Why You Should Consider Buying Nvidia Ahead Of Earnings

Key Points

  • Demand for shares has been heating up.
  • The company has emerged as an early leader in the AI battle. 
  • Next week's earnings are likely to hold a considerable upside surprise. 
  • 5 stocks we like better than NVIDIA

And just like that, shares of Nvidia Corporation NASDAQ: NVDA are back to within a good day's worth of trading from all-time highs. About 10% to be exact, a gap which we expect to continue narrowing in the sessions ahead. The past week alone has seen them jump 12%, including a 5% move yesterday, as the company's strong position in the burgeoning AI battle has become clear. 

The Santa Clara headquartered semiconductor maker is due to report earnings next week, and Wall Street will be waiting with bated breath. It's a stock that should, at the very least, be on your watchlist because, notwithstanding this week's rally, there are far more reasons to get involved before the release versus waiting to see what the numbers are like. 

It truly is a remarkable turnaround for a stock that had to endure a 70% drop through October of last year. The most optimistic of bulls who were buying in near the lows are already enjoying 200% gains as Nvidia once again trades like it used to back in 2020 and 2021—all the more reason for those of us on the sidelines to be excited.

Peer Comparison

While the broader semiconductor industry has also rebounded since last October, Nvidia has eclipsed the performance of its closest competitors. The VanEck Semiconductor ETF NASDAQ: SMH is up a respectable 55% in that timeframe, while Advanced Micro Devices Inc (NASDAQ: AMD) is up 90%. But Nvidia is almost double this again, with fresh momentum now appearing behind the share price. 

Only three weeks ago, the team over at Erste was upgrading their rating on Nvidia from hold to buy, citing its strength in the data center business. Specifically, they see AI driving sales "sharply" higher, with analyst Hans Engel telling clients that "revenue and profit growth will accelerate significantly in 2024." It was a move that echoed that of HSBC, who also upgraded their rating on Nvidia shares last month on the back of the company's opportunity to become a market leader in AI. Analyst Frank Lee gave Nvidia shares a price target of $355, which would have them trading at fresh all-time highs. 


What was notable about this was that HSBC has long been known as a bear when it comes to Nvidia's prospects, so for them to throw in the towel, the longer-term opportunity must indeed be widening at a rapid pace. Looking ahead to next week's numbers, Vivek Arya from Bank of America expects Nvidia to report "inline/modestly better" numbers, with the real upside surprise being saved for management's forward guidance. Given how well shares have performed this week already, it's clear that investors are buying in on the back of this with a view towards the revisions blowing future forecasted revenue out of the water. 

Getting Involved 

Some concern must be noted given how quickly shares have jumped, and with an RSI of 72, Nvidia is definitely approaching overbought conditions. But that's what happens when there's a paradigm shift in a company's outlook, like there has been with Nvidia in recent weeks. Let's see if the stock can move up through the $320-340 range, as this would set it up for a showdown with 2021's $346 high. Depending on how much of a surprise there is next week, that could quite quickly become a new level of support for the stock versus a target. 

Nvidia stock price If you're bullish on semiconductors in general and AI at large, then there's a lot to like about Nvidia right now. , you're not getting in on the ground floor of the recovery, but remember, this is a stock that rallied over 1,000% in less than three years. The normal rules don't apply here.

→ This is the #1 Stock to Buy for the AI Tidal Wave (From Chaikin Analytics) (Ad)

Should you invest $1,000 in NVIDIA right now?

Before you consider NVIDIA, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and NVIDIA wasn't on the list.

While NVIDIA currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
NVIDIA (NVDA)
4.652 of 5 stars
$852.37+3.6%0.02%71.39Moderate Buy$824.90
Advanced Micro Devices (AMD)
4.2206 of 5 stars
$205.36+1.3%N/A394.93Moderate Buy$179.06
Compare These Stocks  Add These Stocks to My Watchlist 

Sam Quirke

About Sam Quirke

  • s.quirke.us@gmail.com

Contributing Author

Technical Analysis

Experience

Sam Quirke has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical and fundamental analysis, tech stocks, large caps, timing entries and exits

Education

Trinity College, Dublin, Ireland

Past Experience

Professional futures trader, start-up fund manager


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