NVDA - Profit Taking
Jensen Huang, mentioned that Nvidia is strengthening its production capabilities to cater to the growing demand for AI technology, with NVDA chips playing a critical role in AI applications, including generative AI.
NVDA remains a leading figure in the AI domain, and the company is making headway into new market segments, particularly data centres. This sector presents a significant growth opportunity, and NVDA is still ideally poised to leverage this trend.
In recent months, NVDA has seen a phenomenal surge, with shares appreciating more than 165% since the start of the year. While the company's valuation is on the higher side, it is exonerated by its robust growth potential. The stock is subject to some volatility, with a Beta over 1.5.
Even though NVDA is contending with rivals, it has some competitive edges, such as its strong brand recognition and an already dominant position in the AI market.
We still think NVDA stock makes for an attractive investment in our portfolio by seeking to gain from the growth trajectory of AI and data centres, but the recent run-up suggests now is the time for us to take some profit.
Let's go trade!
