Nvidia (NVDA 5.25%) stock is making big gains in Monday’s trading. The company’s share price was up 5.3% as of 2:30 p.m. ET, according to data from S&P Global Market Intelligence.
Nvidia stock is gaining ground due to the company’s product announcements and excitement surrounding this year’s CES consumer electronics event. In addition to excitement about new hardware products that could be revealed during the show, Nvidia’s share price also appears to be climbing higher due to investors putting less focus on macroeconomic and geopolitical uncertainty.
Is Nvidia a top AI stock to buy for 2024?
Multiple reports emerged from analysts today suggesting that the Federal Reserve will pursue significant rate cutting initiatives over the next couple of years. While the recent forecasts for the schedule of rate progressions differ, the broader consensus outlook points to expectations for a significant rate reduction on the horizon. If that comes to pass, Nvidia and other growth-dependent stocks could enjoy significant expansion for their valuation multiples.
In addition to favorable macroeconomic analysis, Nvidia stock is also enjoying bullish momentum in conjunction with this year’s CES expo. The graphics processing unit (GPU) specialist detailed new processors tailored for the generative artificial intelligence (AI), automotive, and gaming markets. Notably, today is still the first day of the expo, and it’s possible that the GPU leader will have other big news to announce before the expo closes on Jan. 12.
Even with the explosive gains the company has made over the last year and some uncertainty about the company’s performance on the near-term horizon, Nvidia stock still looks like a top buy for investors looking to profit on AI trends in 2024 and beyond. The company’s leading position in GPU hardware and initiatives to expand its software and services-based business put the company in position to continue delivering strong sales and earnings growth.
Nvidia continues to enjoy a forefront position in the AI space. For investors, the stock continues to look like a worthwhile buy for 2024 and beyond.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
