Nvidia Approaches Important Level as Earnings Release Nears

Nvidia (NVDA) tested the 50-day moving average on Monday after receiving a boost from Taiwan Semiconductor’s (TSM) strong April sales report. As the leader in artificial intelligence chips hovers at its 50-day moving average, investors holding Nvidia stock may be contemplating whether to hold or take profits. The stock currently holds a D Accumulation/Distribution Rating, showing improvement from an E rating two weeks ago.

Buying interest in Nvidia has been on the rise, with the stock forming a new base. Current holders are advised to consider risk management by trimming their positions to protect gains ahead of Nvidia’s upcoming earnings report.

Chart patterns indicate a clear buy point for Nvidia, according to IBD MarketSurge. Investors are eagerly awaiting Nvidia’s May 22 earnings report, with hopes of a breakout in heavy volume signaling a buy opportunity.

In recent news, Nvidia announced its agreement to acquire Run.ai for $700 million. Run.ai specializes in helping developers utilize AI tools more efficiently, aligning with Nvidia’s focus on AI technology.

Analysts have set bullish price targets for Nvidia stock, with expectations of strong demand for Nvidia’s chips in 2024 and 2025. Following a successful AI developers event in March, analysts at UBS, Truist, HSBC, and Bank of America raised their price targets for Nvidia stock.

Despite its impressive performance in 2023, Nvidia stock is currently not a buy. Traders are advised to wait for a breakout from its new base for a more confident entry. With top ratings in various categories and a strong position in the fabless semiconductor group, Nvidia remains a stock to watch in the AI industry.