There are multiple reasons why Nvidia stock is on everybody's radar. And that's why the artificial intelligence leader is also Thursday's selection for IBD 50 Stocks To Watch.
On Thursday, the stock rose past a buy zone from a an entry point of 140.76, which goes up to 147.79. But investors who missed that window have a second shot at getting in.
Nvidia stock is above a handle entry 144.42 buy point and in buying range that goes up to 151.64. That is just above a psychologically important level of 150. However, the stock's rally is in a later stage, going by the base count seen on IBD MarketSurge.
The AI player's stock is in a third-stage base. Later bases often tend to net lower gains, based on Investor's Business Daily research.
Artificial Intelligence News And AI Stocks To Watch
The stock has rallied 195% year to date, as of Wednesday's closing price. But its 2023 rally was an even more impressive 239%.
Nvidia Stock Holds Gains Heading Into Earnings
Shares also hold a 9% gain from last week as they head into earnings next Wednesday. Earnings can add some volatility. However, Nvidia's stock chart, technical ratings and fundamental performance remain strong.
Though Nvidia stock pulled back on Oct. 31 after a breakout, it found its footing at the 21-day moving average before clearing the buy point again.
Nvidia has an ideal Earnings Per Share Rating of 99 from Investor's Business Daily, while its all-around Composite Rating is 98. The stock also has outperformed 97% of all stocks in the IBD database.
More funds have been net buyers of Nvidia stock over the past seven quarters, though in recent weeks fund purchases have not been as strong. That has gotten the stock a weak Accumulation/Distribution Rating of D+ on a scale of A to E.
Nvidia is also the largest company by market cap and among the Magnificent Seven stocks that led much of the rally in 2023.
Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla
The American Century Focused Dynamic Growth Fund (ACFSX) and the JP Morgan Large Cap Growth Fund (SEEGX) hold shares of Nvidia stock.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
