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Buy Nvidia Stock Now or Wait for A Retrace?

Today main indices in the US saw further gains, with technology stocks experiencing a decline following a sharp rise yesterday, which was attributed to Nvidia stock surge after the better-than-expected earnings report for the fourth quarter. By Friday afternoon, the Dow Jones Industrial Average had risen by 0.2%, the S&P 500 had edged up by 0.1%, moving above the 5,100 point mark, while the Nasdaq Composite showed minimal movement.

Nvidia stock price surge following its earnings announcement indicates strong investor confidence in the company’s performance and future prospects. The significant beat in sales and earnings demonstrates Nvidia’s ability to outperform market expectations, which was viewed positively by investors, who poured in to buy Nvidia shares yesterday.

Breaking through the $800 mark earlier today shows that investor interest and optimism surrounding Nvidia’s growth potential still remained strong today, as NVDA stock opened with a bullish gap for the second day. The beat and raise quarter suggests that Nvidia is effectively executing its business strategy and capitalizing on market opportunities.

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Nvidia Chart – H4 Timeframe

NVDA broke above $800 today

However, it’s important for investors to consider various factors before embarking on Nvidia stock longs, especially after such a strong rally. We might see a retreat before the uptrend resumes again. That would be a good opportunity to buy Nvidia shares. Besides that, the usual long term fundamental analysis including the company’s competitive landscape, industry trends, potential regulatory challenges, and overall market conditions should also be taken into account, because the situation doesn’t change with just one quarter. While strong earnings results may contribute to short-term stock price movements, long-term investment success requires a comprehensive understanding of the company’s fundamentals and its ability to sustain growth over time.

An issue right now is the limited availability of AI chips has been a significant challenge for Nvidia and could potentially impact its expansion plans. Consumers may indeed choose to wait for the release of the next generation B100 microprocessor, especially if they believe it offers substantial improvements or features compared to current offerings.

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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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