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Should you buy Nvidia stock in 2024?

Should you buy Nvidia stock in 2024?
Elmaz Sabovic

Nvidia (NASDAQ: NVDA) is a prominent advanced computing and graphics technology influencer. Recognized for its expertise in graphics processing units (GPUs), Nvidia has significantly impacted various sectors, spanning gaming, artificial intelligence (AI), data centers, and automotive technology.

Its GPUs drive immersive gaming experiences, propel breakthroughs in AI research, and support intricate data analysis. Beyond hardware, the company takes innovative strides in developing high-performance computing solutions to meet the demands of industries requiring exceptional computational power.

Nvidia’s vision extends to software frameworks, including CUDA and AI-based platforms like Nvidia DGX, facilitating the integration of cutting-edge technologies into everyday applications.

Positioned as a key player in the AI revolution and an innovator in high-performance computing, Nvidia remains at the forefront of technological advancements shaping our digital landscape.

Cons and pros of buying NVDA stock

Nvidia’s standing as a premier tech stock in 2024 is cemented by its supremacy in the graphics processing unit market and its expansion into high-growth sectors like artificial intelligence and data centers. The company’s innovative GPU technology, encompassing advancements in AI, gaming, and autonomous vehicles, fortifies its growth potential.

Investing in Nvidia offers several benefits, including a robust market presence in critical technology sectors, consistent revenue growth, and a focus on cutting-edge technologies driving industry transformation.

Nevertheless, potential downsides include the cyclicality inherent in the semiconductor industry, susceptibility to supply chain disruptions, and competitive pressures from rival firms. Additionally, regulatory changes and evolving market dynamics may pose challenges.

Despite these considerations, Nvidia’s technological leadership and pivotal role in shaping various emerging sectors make it an appealing investment choice for those seeking exposure to high-growth tech industries.

NVDA holds a market cap of $1.1 trillion, with a P/E ratio 61 and an EPS of $7.65. The dividend yield is 0.03%. 

NVDA stock price analysis

At the time of press, NVDA stock was worth $488.30, noting a decrease of -0.33% from the previous trading session. In the past 365 days, this stock has added an impressive 241.11% value.

NVDA YTD stock price chart. Source: Finbold
NVDA YTD stock price chart. Source: Finbold

With an impressive added value in the previous year, NVDA stock looks set to continue with gains in 2024; the expansion of AI and the need for high-performance GPUs and CPUs set up this company for success.

However, investors must conduct their research, as they will gain more knowledge and insights into the potential upsides and downsides of investing in a particular stock.

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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