The tipping point?
Nvidia investors have endured a gut-wrenching roller-coaster ride over the past several years. During the 10 years leading up to November 2021, Nvidia stock soared more than 8,800%, driven higher by the company's dominance in gaming and astute moves into AI, cloud computing, and data centers. In the face of macroeconomic headwinds, however, Nvidia stock fell off a cliff, falling as much as 66% from its peak, fueled by fears about the economic impact of the downturn.
The company seemed to suggest that the worst has passed. For its fiscal 2024 first quarter, management is guiding for revenue of $6.5 billion, a decline of 21% year over year but a 7% improvement sequentially. Helping fuel the recovery is a slow rebound of demand for gaming processors. "Gaming is recovering from the post-pandemic downturn, with gamers enthusiastically embracing the new Ada architecture GPUs with AI neural rendering," Huang said.
It's been clear from the beginning that Nvidia's recovery was only a matter of time. So far this year, the stock has quietly jumped 42%, a figure that will likely go higher in the wake of the company's better-than-expected performance. Given the long runway ahead, Nvidia stock is still a buy. $NVIDIA(NVDA.US$ $PHLX Semiconductor Index(.SOX.US$ $Direxion Daily Semiconductor Bull 3x Shares ETF(SOXL.US$
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