Nvidia is Monday's pick for IBD 50 Growth Stocks To Watch as the leading artificial intelligence computing stock nears a buy point. Shares of Nvidia stock are gaining ground on Apple for the title of most valuable company in the world.
Nvidia engineers advanced chips, systems and software and offers services that allow companies to create to their own AI factories.
Currently, Nvidia stock has a market capitalization of roughly $3.387 trillion. That's $105 billion shy of Apple's $3.492 trillion valuation, according to Dow Jones Market Data.
Nvidia was up 2.6% while Apple stock gained 0.9% in recent trades.
Nvidia is boosting production of next-generation Blackwell AI chips as the next generation processor is sold out for the next 12 months.
Nvidia stock could move on the upcoming earnings report from its Blackwell chip supplier Taiwan Semiconductor on Thursday. Taiwan Semi reached a record high Monday morning before fading. The stock is extended from the buy zone of a cup-with-handle base with a 175.45 buy point.
Nvidia stock is on the IBD Leaderboard and SwingTrader. It holds perfect 99 scores for its Investor's Business Daily Composite and Earnings Per Share Ratings and a 98 Relative Strength Rating.
Nvidia Stock Back Near Highs
Nvidia stock climbed more than 3% then trimmed gains Monday morning, although volume was lighter than average. Shares are on track for a record close by topping the prior high of 135.58 set on June 18.
Nvidia is nearing the 140.76 buy point of a late-stage irregular base, according to IBD MarketSurge pattern recognition. That buy point is also its record intraday high, set on June 20. Shares have gained around 180% so far this year.
Nvidia Earnings Growth Tapers, But Still Robust
Analyst estimates show 84% earnings growth for the current quarter that slows to 42% over the next four periods. But this compares with explosive increases over the last five quarters ranging from 152% to 567%.
Sales forecasts call for similar deceleration, with 82% growth in its October-ended quarter that trails to 43% four quarters out. This also comes after growth of 122% to 265% over the last four quarters.
Full-year earnings estimates see a 119% pop in fiscal 2025 and a 43% advance in fiscal 2026.
One blemish on Nvidia stock is its Accumulation/Distribution Rating of D, indicating moderate institutional selling over the last 13 weeks.
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