NVIDIA Shares Are Soaring Today: Are Artificial Intelligence (AI) Growth Stocks Good to Buy in 2024?
nvidia (NVDA 5.37%) Stocks are seeing big gains in Monday trading. The company’s shares were up 5.3% as of 2:30 p.m. ET, according to data from S&P Global Market Intelligence.
Nvidia stock is on the rise due to the company’s product announcements and excitement surrounding this year’s CES consumer electronics event. In addition to anticipation of new hardware products that could be unveiled at the show, Nvidia’s stock also appears to be rising as investors focus less on macroeconomic and geopolitical uncertainties.
Is Nvidia the best AI stock to buy in 2024?
Today, analysts released several reports suggesting that the Federal Reserve will pursue plans for significant interest rate cuts over the next few years. Although recent forecasts differ on the timeline for rate hikes, the broader consensus suggests that a significant rate cut is expected soon. If this materializes, Nvidia and other growth-dependent stocks could see their valuation multiples expand significantly.
In addition to favorable macroeconomic analysis, Nvidia stock is enjoying bullish momentum with this year’s CES Expo. The graphics processing unit (GPU) expert detailed new processors geared toward the generative artificial intelligence (AI), automotive and gaming markets. Notably, today is still the first day of Expo, and it’s likely that GPU leaders will have other big news to announce before the Expo ends on January 12th.
Despite the company’s explosive profits last year and uncertainty about the company’s performance in the near term, Nvidia stock still appears to be a top buy for investors looking to profit from AI trends in 2024 and beyond. The Company’s leading position in GPU hardware and its plans to expand its software and services-based businesses position the Company to continue delivering strong top and bottom line growth.
Nvidia continues to enjoy a leadership position in AI. For investors, this stock continues to look like a worthy buy beyond 2024.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has a position at and recommends Nvidia. The Motley Fool has a disclosure policy.
