Nvidia is the IBD Stock Of The Day as anticipation builds for the AI leader's quarterly earnings report next week. Nvidia stock hit a buy point on Wednesday.
In morning trades on the stock market today, Nvidia stock cleared a cup-with-handle base at a buy point of 922.20, according to IBD analysis. That stock pattern is within a 10-week consolidation with a buy point of 974, according to IBD MarketSurge charts.
Nvidia stock gained 3.6% to close at 946.30.
The Santa Clara, Calif.-based chipmaker and AI software provider plans to report results for its fiscal first quarter ended April 28 next Wednesday.
Analysts polled by FactSet expect Nvidia to earn an adjusted $5.58 a share, up 412% year over year, on sales of $24.51 billion, up 241%. That would mark its fourth straight quarter of triple-digit percentage growth in sales and earnings.
Nvidia is the leading provider of graphics processing units, or GPUs, used by cloud service providers for artificial intelligence applications. Its sales have skyrocketed since the start of the generative AI trend more than a year ago.
Nvidia Stock Is On 4 IBD Lists
In a client note Tuesday, KeyBanc Capital Markets analyst John Vinh said he is seeing limited signs of a pause in sales at Nvidia despite the planned launch of a next-generation GPU in the second half of the year.
Nvidia's fiscal Q1 sales should be helped by an improving supply of GPUs, Vinh said. Contract manufacturer Taiwan Semiconductor Manufacturing makes Nvidia's chips.
Last week, Taiwan Semi reported better-than-expected sales for the month of April, thanks in part to AI chip production.
Vinh reiterated his overweight, or buy, rating on Nvidia stock with a price target of 1,200.
Nvidia stock is on four IBD stock lists: IBD 50, Leaderboard, Sector Leaders and Tech Leaders.
Further, Nvidia stock ranks first out of 39 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. It has a best-possible IBD Composite Rating of 99.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
