Santa Clara, California-based NVIDIA Corporation (NVDA) is a key innovator of computer graphics and AI technology. The company provides graphics and compute and networking solutions. With a market cap of $3.4 trillion, NVDA develops a platform for scientific computing, AI, data science, autonomous vehicles, robotics, metaverse, and 3D internet applications, as well as focuses on PC graphics by serving clients worldwide.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and NVDA definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the semiconductors industry. Nvidia is a trailblazer in GPU-accelerated computing, focusing on creating innovative products and platforms for gaming, professional visualization, data center, and automotive industries.
Despite its notable strength, NVDA shares slipped 9.6% from their 52-week high of $152.89, achieved on Nov. 21. Over the past three months, NVDA stock has gained 17.6%, outperforming the iShares Semiconductor ETF’s (SOXX) 4.4% dip during the same time frame.
In the longer term, shares of Nvidia rose 179.2% on a YTD basis and climbed 187.2% over the past 52 weeks, significantly outperforming SOXX’s YTD gains of 12.2% and a solid 24.9% return over the last year.
To confirm the bullish trend, Nvidia has traded above its 50-day moving average since early October, with slight fluctuations recently. It has been trading above its 200-day moving average over the past year.
Nvidia’s success is driven by its diverse business spanning gaming, autonomous vehicles, and AI. Its data center business, fueled by the growth of AI, now dominates its revenue. The company’s Blackwell platform and strong demand are expected to fuel continued growth. Nvidia’s GPU dominance, backed by the widely used CUDA software platform, gives it a competitive edge. Moreover, Mizuho raised Nvidia’s GPU sales estimate for 2025, citing increased demand in gaming, data centers, and AI.
On Nov. 20, NVDA shares closed down marginally after reporting its Q3 results. Its adjusted EPS of $0.81 exceeded Wall Street expectations of $0.75. The company’s revenue was $35.1 billion, beating Wall Street forecasts of $33.3 billion.
Nvidia’s rival, Advanced Micro Devices, Inc. (AMD) shares lagged behind the stock, with a 6.9% decline on a YTD basis and a 10.8% gain over the past 52 weeks.
Wall Street analysts are bullish on NVDA’s prospects. The stock has a consensus “Strong Buy” rating from the 43 analysts covering it, and the mean price target of $173.06 suggests a potential upside of 25.2% from current price levels.
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