Nvidia — a powerhouse in artificial intelligence, data centers, robotics, self-driving vehicles and high-performance computing — has no shortage of growth opportunities. But what does it all mean for Nvidia stock in 2024?
Like fellow Magnificent Seven stocks Apple, Alphabet, Amazon.com, Microsoft, Meta Platforms and Tesla, Nvidia stock got ravaged in last year's bear market.
But Nvidia then fueled a powerful rebound, just as it had after a sharp decline in the last quarter of 2018. From a low in October 2022, the Silicon Valley-based giant soared 365% until hitting a new high — and resistance — in August.
Now as we get set to say goodbye to 2023 and hello to 2024, NVDA stock appears to have worked through a spat of resistance, holding support at its 10-week moving average. on Wednesday, Nvidia closed back in buy range.
Nvidia also just made the IBD Breakout Stocks Index, alongside Microsoft and Apple. NVDA stock also earns a spot on the IBD 50 and IBD Leaderboard.
As Wall Street analysts make their forecasts for the future, individual investors might want to set aside their crystal balls. Instead, focus on the chart action in Nvidia stock. That will provide the most accurate guide for monitoring and properly handling the AI powerhouse in 2024.
Who Joins Nvidia Stock On The IBD Breakout Stocks Index?
Factors To Watch For Nvidia Stock In 2024
Given the intense interest in Nvidia and its impressive stock performance this year, investors often ask, is Nvidia stock a buy or sell?
To address that question, three factors (among others) come into play. Each will be integral in determining how to handle Nvidia in 2024 and beyond.
3 Pillars Of Investing Success
First, consider the three pillars of successful investing. Like with a three-legged stool, the best and most stable results for your portfolio occur when all three elements are in place. Investors should look for a strong market uptrend, sound company fundamentals and strong performance in the stock chart.
Think of Apple stock in 2008. The iPhone, iTunes and the whole app ecosystem made Apple a great company. But a bear market induced by a severe financial crisis took a huge bite out of the stock before it eventually rebounded — in a big way — in 2009.
Nvidia stock followed a similar trajectory at the end of 2021 through most of 2022. As a company, Nvidia was a dynamo even as the stock — and the market indexes — sank. Having rebounded with a vengeance, Nvidia now presents another factor to consider.
Support And Resistance In Nvidia Stock
A second factor to monitor is support and resistance at key areas, particularly buy points and moving averages.
In August, Nvidia began forming what eventually turned into a 10-week-long double bottom offering a 476.09 buy point.
Nvidia stock cleared that entry last month, but ran into resistance around 500 after gaining around 5%. It retreated after reporting earnings on Nov. 21, but found support at its 50-day moving average. Continuing to show resilience, the stock is back in buy range after once again retaking its 21-day exponential moving average.
As Nvidia navigates its current fluctuations, monitor the stock's action around the moving averages and the earlier buy point. And as we enter the new year, use the same signals to gauge whether it's time to buy, sell, hold or trim any position you may have in Nvidia stock.
Institutional Demand For Nvidia Stock
Finally, continue to track institutional buying and selling in Nvidia stock. Such movements get revealed in the stock chart by monitoring the price and volume action. Investors can also track that using the Accumulation/Distribution Rating and up/down volume ratio.
Currently, 113 funds with an A+ rating from IBD own NVDA stock. Plus, it sports four quarters of rising fund ownership, according to IBD Stock Checkup.
Nvidia stock also earns top billing in the fabless-semiconductor industry group with a near-perfect 98 Composite Rating.
Finding NeMo: Nvidia Unveils Latest AI Innovation
As noted in the IBD Stock Analysis on Nov. 10, Nvidia continues to unleash a barrage of AI enhancements.
On Nov. 28, the company expanded its push into AI, unveiling business intelligence for chatbots, co-pilots and summarization tools with its enterprise-grade generative AI microservice.
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 with retrieval-augmented generation (RAG) capabilities. NeMo Retriever helps generative AI applications provide more accurate responses through Nvidia-optimized algorithms.
ServiceNow, Cadence Design Systems, Dropbox and SAP have signed on as the first partners to access the Nvidia NeMo Retriever.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
