Make no mistake about it: Nvidia (NASDAQ:NVDA) has established itself as a leader in developing hardware for artificial intelligence applications. Nvidia hasn’t abandoned its status as an innovator in the broader graphics processing unit market. Therefore, even after the impressive year-to-date run in NVDA stock, don’t be surprised if it continues to head higher.
Some financial traders might get bogged down with concerns about valuations and overbought-versus-oversold. Instead of losing sleep, just consider whether Nvidia is a solid technology enterprise with growth potential.
After delving into Nvidia’s latest advancements in AI, you’ll be convinced that NVDA stock isn’t grossly overbought. This doesn’t mean you have to go all-in as an investor. Instead, feel free to add Nvidia to your watch list and understand that, for great companies, momentum often begets momentum.
| NVDA | Nvidia | $313.00 |
GPU Advancements and NVDA Stock
The hot tech topic in 2023 is AI, and we’ll definitely discuss that in a moment. However, don’t ignore Nvidia’s bread and butter, which is the company’s best-in-class graphics cards.
Traders would be unwise to short-sell NVDA stock as Nvidia continues to innovate in GPU technology.
For example, reports have surfaced that Nvidia’s Geforce 4090 iGame LAB graphics card achieved a notable milestone. Specifically, it broke 3800 megahertz (MHz) barrier in a 3D application.
Separately, reports are circulating that Nvidia’s upcoming GPU, the the RTX 4060 Ti with 16 gigabytes (GB) of VRAM, will have 165 watts (W) of thermal design power (TDP). This ultra-powerful graphics card, according to VideoCardz.com, is “set to launch in the second half of July.”
Nvidia Is Relentless in Pursuing AI Technology
These upcoming products bode well for Nvidia and its stakeholders, but there’s more to the story. Nvidia remains committed to advancing the robust hardware that’s needed to power today’s and tomorrow’s AI applications.
For example, Nvidia’s A100 chip can provide the computational power required by generative AI programs. Nvidia is making waves in the field of machine learning compatible hardware with its DGX supercomputers.
What AI-adjacent products will Nvidia introduce next? We don’t have a crystal ball or insider information, but we do know that Nvidia is preparing to release around 20 research papers “advancing generative AI and neural graphics.”
Nvidia plans to introduce these research papers in August during the tech-centric SIGGRAPH 2023 conference in Los Angeles. The concepts expressed in these papers include generative AI, inverse rendering tools and neural rendering models.
The Momentum Is Strong With NVDA Stock
Successfully investing in Nvidia isn’t just about monitoring price-to-earnings (P/E) ratios and other valuation metrics. What’s important is to assess the company’s growth potential as a leader in next-gen GPU and AI hardware products.
In that regard, Nvidia is firing on all cylinders. Ultimately, you don’t have to rush into a long position with NVDA stock if you think it’s too pricey now. Just don’t be surprised if the stock continues to march higher this year. After all, over the long run, solid companies tend to provide solid returns.
On the date of publication, Louis Navellier had a long position in NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.