Santa Clara, California-based NVIDIA Corporation (NVDA) is a key innovator of computer graphics and AI technology. The company provides graphics, computing and networking solutions. With a market cap of $4.4 trillion, NVDA develops platforms for scientific computing, AI, data science, autonomous vehicles, robotics, the metaverse, and 3D internet applications.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and NVDA definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the semiconductors industry. NVDA is a trailblazer in GPU-accelerated computing, focusing on creating innovative products and platforms for gaming, professional visualization, data center, and automotive industries.
Despite its notable strength, NVDA shares slipped 3.3% from their 52-week high of $184.48, achieved on Aug. 12. Over the past three months, NVDA stock has gained 28.2%, outperforming the Dow Jones Industrials Average’s ($DOWI) 8.4% gains during the same time frame.
In the longer term, shares of NVDA rose 32.9% on a YTD basis and climbed 42.1% over the past 52 weeks, outperforming DOWI’s YTD gains of 7.3% and 11.1% returns over the last year.
To confirm the bullish trend, NVDA is trading above its 200-day moving average since mid-May. It has been trading above its 50-day moving average since early May.
Nvidia’s outperformance is driven by its strong position in AI technology, with broad-based demand across industries and regions. With leadership in GPUs and networking systems, a robust product pipeline including the Blackwell platform, and expanding AI infrastructure investments expected to reach $3 trillion to $4 trillion by the end of the decade, Nvidia is well-positioned for continued growth. Additionally, Nvidia’s Spectrum-X technologies are vital for building AI factories, while new solutions like Spectrum-XGS strengthen its position in data center networking. Nvidia is also expanding into sovereign AI initiatives, enterprise servers, robotics, autonomous driving, and gaming, diversifying its revenue streams and demonstrating its innovation across multiple industries.
NVDA reported its Q2 results on Aug. 27, and its shares closed down marginally in the following trading session. Its adjusted EPS of $1.05 surpassed Wall Street expectations of $1. The company’s revenue was $46.7 billion, beating Wall Street forecasts of $46.1 billion.
NVIDIA’s rival, Advanced Micro Devices, Inc. (AMD) shares lagged behind the stock, with a 14% uptick over the past 52 weeks, but outpaced the stock with a 38.1% gain on a YTD basis.
Wall Street analysts are bullish on NVDA’s prospects. The stock has a consensus “Strong Buy” rating from the 46 analysts covering it, and the mean price target of $199.28 suggests a potential upside of 10.6% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com