Nvidia stock is climbing Wednesday and is in a buy zone, bolstered by Chief Executive Jensen Huang's upbeat comments about artificial intelligence demand. The tech giant is collaborating with multiple companies on AI endeavors, including investing in Elon Musk's new xAI startup.
The Dow stock is Wednesday's pick for IBD 50 Growth Stocks To Watch. Nvidia was also Tuesday's IBD Stock Of The Day and was added to IBD SwingTrader on Wednesday.
Nvidia is a leader in developing GPUs and software used in AI data centers, gaming, vehicles and robotics. It is on four IBD lists: Big Cap 20, IBD Sector Leaders, Stock Spotlight, and Tech Leaders.
Demand for artificial intelligence computing has gone up "substantially" in the last six months, Huang said in a CNBC interview Wednesday.
"I think we're at the beginning of a new buildout, beginning of a new industrial revolution," he said. Demand is "really, really high" for Nvidia's Blackwell graphics processing units, Huang said.
Huang also confirmed Bloomberg's report that Nvidia is participating in Musk's xAI venture, which is now seeking up to $20 billion of funding. Nvidia's leader told CNBC he's "super-excited" about investing in the venture and wished he could give more.
In late September, Nvidia said it would invest up to $100 billion in ChatGPT developer OpenAI. The partnership will provide OpenAI data-center infrastructure with millions of Nvidia GPUs.
Nvidia ranks No. 1 out of 41 stocks in the Electronics-Semiconductor Fabless group. The group holds the seventh spot out of the 197 industries that Investor's Business Daily tracks.
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Nvidia Stock In A Buy Zone
The AI stock is rising Wednesday and is in the buy zone that extends to 193.70 from a flat-base buy point of 184.48, according to MarketSurge pattern recognition.
Nvidia stock is back above its 10-week moving average after testing it in the stage-two base.
Shares are near their all-time high of 191.05 reached on Oct. 2. But its IBD Timeliness Rating of A indicates potential positive relative price performance over the next 12 months.
Its IBD Accumulation/Distribution Rating of B indicates moderate institutional buying over the last 13 weeks. Seven IBD Mutual Fund Index names hold Nvidia stock, including Fidelity Contrafund (FCNTX), with a position of 91.1 million shares as of June.
Analysts Raise Profit Estimates On AI Leader
Nvidia analysts recently raised their fiscal 2026 profit growth forecasts to 51%, followed by 42% in fiscal 2027. But this is considerably less than the company's 294% earnings increase in fiscal 2024 and its 130% jump in fiscal 2025.
Sales are expected to rise around 55% over each of the next two quarters, then by around 46% in the following two quarters.
Lastly, Nvidia stock holds best-possible 99 IBD Composite and Earnings Per Share Ratings.
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