Artificial intelligence leader Nvidia, one of the Magnificent Seven stocks, is Tuesday's pick for IBD 50 Growth Stocks To Watch. Nvidia stock is in a new buy area after a bullish rebound from a key support level. That makes NVDA one of the best stocks to buy and watch in today's market.
Nvidia's 2023 success placed the graphics-chip maker on IBD Leaderboard.
In the latest quarter, reported Nov. 21, Nvidia earnings skyrocketed 593% to $4.02 per share vs. the year-ago period. Sales surged 206% to $18.12 billion.
Analysts expect the company to earn $12.26 per share for its 2024 fiscal year ending Jan. 30. That profit will further expand to $20.70 per share in fiscal 2025, according to FactSet.
At the end of November, the company expanded its push into AI.
NeMo Retriever — a new offering in the Nvidia NeMo family of frameworks and tools for generative AI models — helps organizations enhance their generative AI applications. NeMo Retriever helps generative AI applications provide more accurate responses through Nvidia-optimized algorithms.
Thanks to the company's long-term profitability and big earnings gains in recent quarters, Nvidia has a best-possible 99 Earnings Per Share Rating, according to IBD Stock Checkup.
NVDA stock also boasts a perfect 99 IBD Composite Rating following a tremendous stock move in 2023.
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Nvidia Stock In Buy Zone
The AI giant is in buy range from a double bottom's 476.09 buy point. NVDA also found support at the 50-day moving average earlier this month, according to IBD MarketSmith chart analysis. The 5% buy area runs up to 499.89. Nvidia stock slid nearly 2% Tuesday afternoon.
Meanwhile, Nvidia stock is close to forming a new flat base, which would offer an additional entry at 505.48. The current base is only four weeks long. The minimum length of a flat base is five weeks, which could be reached at the end of this week.
A key technical metric to watch is the relative strength line. NVDA stock's RS line is approaching new highs. That's a sign of long-term stock market outperformance. The RS line hit a new high in the direct aftermath of the Nov. 9 breakout, reiterating the stock as a market leader.
With the stock market outlook in a confirmed uptrend, investors have the opportunity to raise market exposure through buying stocks making strong breakouts. And Nvidia stock deserves a look.
Best Stocks To Buy And Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch, along with Nvidia stock.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Royal Caribbean | 112.95 | Cup base | |
| Snowflake | 192.66 | Cup with handle | |
| Microsoft | 366.78 | Cup base |
Source: IBD Data As Of Dec. 19, 2023
Follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
