Known as the world leader in Artificial Intelligence chip manufacturing, Nvidia stock can be a good investment opportunity for traders of all types, whether they lean towards a long-term or short-term investment.
The growth of the stock is purely driven by the AI market demand. We are living in a world that AI products are becoming part of our life style. From image generation, OpenAI and ChatGPT. Such a high demanding market makes it a great opportunity for competitors such as AWS or Microsoft to invest into this sector.
This means one thing, there is a potential that the demand for Nvidia chips will slow down and traders will start moving away from it. Well, this is true for every company. Supply and demand always changes.
Nvidia is primarily known for its graphic cards the performance and quality excels in every aspect. For example RTX 4080 is currently selling for $999, with such a high price tag and high demand makes it a company that focuses on different areas. Despite the hefty price tag it is out of stock.
Stock growth – 2024
37.49% growth since 1 May to June. This is a stock that has beaten every other market. A company with a great vision and targeting niche market. With Nvidia stock crossing the $ 1,000 mark we have entered a new level. The bigger question how long will this growth last?
Should I invest in it?
Nvidia is heavily involved in the AI market, and with its latest chip development it aims to remain a leader in the AI market.
What other stock compared to Nvidia worth investing?
There are many stocks to compare with it, but I find these two below good opportunity.
- Super Micro Computer has also benefited from the artificial intelligence demand. Since, they both work together we can expect both of them growing.
- Microsoft doesn’t purely invests in AI but with Azure cloud services demand growing it makes it a candidate
If you have any more stocks that you think can be good investment, please share it in the comment.
What factors will make it go down?
For a stock to go down, it’s not just about loses they make. It could be there were many buyers who decide now its time to pull out or a legal case has been filled against it. Nvidia from a business point has made smart decision in the past few years, they invest heavily in R&D, according to Statista it has invested $ 7.34 billion in 2023. There might be a sudden drop but we should be expecting it recover over a period of time. 2024 is the year that will test the strength of its stock.
Please note: trading comes with risk, and the notes above are personal opinion.