Nvidia is the IBD Stock Of The Day as the artificial intelligence leader prepares to release its next-generation AI chip series, called Blackwell.
The Santa Clara, Calif.-based company says it is on pace to release Blackwell products in the fourth quarter. Blackwell will succeed the Hopper series of data-center processors, which debuted two years ago.
Blackwell delivers 2.5 times the performance of its predecessor for AI training per chip and five times the performance in AI inferencing, Nvidia says. Nvidia Chief Executive Jensen Huang introduced Blackwell in March, calling it "a processor for the generative AI era."
Ahead of the Blackwell launch, Nvidia released a round of performance benchmarks for Blackwell that demonstrated its superiority in data-center tests.
Nvidia Stock Sets Multiple Buy Points
On the stock market today, Nvidia stock rose 2.2% to close at 123.51.
Investors can view the stock as actionable after it bounced off its 50-day moving average line and cleared its Sept. 12 high of 120.79, according to IBD analysis. With the move higher, it snapped a downward trendline.
Further, Nvidia stock has formed a handle with a 131.26 buy point, based on IBD trading principles. That buy point is within a 15-week consolidation pattern with a traditional buy point of 140.76, according to IBD MarketSurge charts.
Data-Center Revenue Looks Strong
On Monday, Bernstein analyst Stacy Rasgon reiterated his outperform rating on Nvidia stock with a price target of 155.
Rasgon noted that Nvidia's data-center revenue is looking strong ahead of the fourth quarter. He also said Nvidia's gross margin targets are reasonable, considering the ramp of Blackwell production.
On Tuesday, CFRA Research analyst Angelo Zino named Nvidia, Broadcom and Marvell Technology as his top picks among AI chipmakers. He rates Nvidia stock as buy with a price target of 139.
Nvidia stock is on three IBD lists: IBD 50, Leaderboard and SwingTrader.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
