AI, Self-Driving Cars Pave Way For Nvidia's Continued Growth
MATTHEW GALGANI 04:02 PM ET 12/27/2021
Nvidia ( NVDA) keeps driving higher as it pioneers and pushes forward multiple game-changing trends. Advances in self-driving cars, virtual reality and artificial intelligence continue to propel Nvidia's growth and lift NVDA stock toward all-time highs.
To ring in the New Year, Nvidia will unveil its latest accelerated computing breakthroughs in a virtual address at CES.
The AI and self-driving-car tech leader has also been driving a new era of 3D collaboration and simulation with the Nvidia Omniverse. The Omniverse is an open platform that creators, designers, and engineers can use to collaborate via physically accurate simulations, iterating in a shared virtual space.
Top Funds Bet Billions On Nvidia And Leading Tech Stocks
Since its invention of the graphics processing unit (GPU) in 1999, Nvidia has redefined modern computer graphics, high-performance computing and artificial intelligence. And it has also pushed advances in virtual reality.
With AI, VR and autonomous-vehicle trends pushing Nvidia's growth, Nvidia joins Apple( AAPL), Microsoft ( MSFT) and Alphabet( GOOGL) on IBD's latest list of new buys by the best mutual funds. AAPL, GOOGL, MSFT and NVDA stock each took in at least $1 billion from top-performing money managers.
Nvidia has also secured a spot on IBD Leaderboard, joining Microsoft and GOOGL stock on this list of leading growth stocks. The Silicon Valley-based company is also on the IBD Big Cap 20 list of top-rated large-cap stocks.
In tandem with the AI, VR and other technological advances. stellar fundamentals are also driving strong institutional demand for Nvidia. Over the last three quarters, Nvidia has posted average earnings growth of 84%. Over the last three years, annual EPS growth has averaged 39%. Sales growth has averaged 30% during the same period.
NVDA Stock Finds Support, Bounces Toward All-Time High
In late October, Nvidia soared past its 10-week moving average as it launched a new breakout. The stock continued to climb until hitting resistance in late November as the stock market indexes also encountered selling pressure.
But NVDA stock found support at its 10-week line and reclaimed that benchmark to put it in an alternative buy zone. When buying a stock off a bounce from the 10-week moving average, you want to buy as close as possible to that line.
As Nvidia retreated from its late-November high, the relative strength line also pulled back. The RS line has begun to tick higher, so look for that to continue as NVDA stock rebounds and the stock market indexes try to build on the renewed uptrend.
NVDA stock gained over 4% Monday in rising but below average volume.
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