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
40% growth in less than 50 days. This is a very fast pace stock that has beaten every other stock in the market. A company with a great vision and targeting niche market. The resistance level is sitting around 780 which it has crossed for sometime. Given that the demand is growing we can expect a higher resistance level but with a slow pace upward rise.
CMC Markets graph
Should I invest in it?
Engaging in trading involves both losses and profits.. When prices of a stock are high, it might be difficult for you to enter but you can look into CFDs, allowing you to trade with a margin of the stock. This offers a great opportunity if you have limited capital. Note: While CFDs with leverage sound very interesting it comes with a high risk.
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.