Nvidia Stock Is an Undeniable Momentum Pick

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In 2023, the artificial intelligence (AI) revolution is unstoppable – and so is Nvidia (NASDAQ:NVDA) stock. Could $300 just be a stepping stone on the way to higher share prices? It’s entirely possible as Nvidia’s chief executive is all-in on machine learning, and the company is ready to deploy AI technology practically anywhere and everywhere.

Who would have imagined that the hottest tech topic of this year’s first quarter would be AI? Yet, here we are and, much to the investing community’s surprise, Nvidia is developing into an AI hardware juggernaut.

You just never know what Nvidia might do next. Recently, the company was famous for manufacturing graphics processing units for video game consoles. Nvidia is changing this year and, as we’ll discover, the company’s chief executive is heralding a new and exciting chapter for the tech-component maker.

Nvidia’s CEO Touts AI Supercomputers and More

There’s no denying it: Nvidia CEO Jensen Huang is serious about capitalizing on the machine learning movement. During Nvidia’s recent GPU Technology Conference (GTC), Huang touted his company’s deployment of AI technology in semiconductors, cloud services, software libraries and more.

A prominent example is Nvidia’s DGX supercomputers, which Huang called “modern AI factories.” In a blog post, Nvidia claims that “Half of all Fortune 100 companies have installed DGX AI supercomputers.”

Huang announced a new GPU known as the H100 NVL with dual-GPU NVLink. This product “features a Transformer Engine designed to process models such as the GPT model that powers” OpenAI’s ChatGPT. Huang claims that it “can reduce large language model processing costs by an order of magnitude.”

Huang also spoke about the new Nvidia DGX Cloud. This product facilitates the “end-to-end development and deployment of AI,” for practically any business. DGX Cloud, according to Huang, “offers customers the best of NVIDIA AI and the best of the world’s leading cloud service providers.”

Analysts Are Bullish on NVDA Stock

As AI becomes top-of-mind among tech aficionados and the financial community, NVDA stock has momentum that’s undeniable in 2023. Yet, some analysts strongly suggest that there’s still potentially more room to run.

Bernstein analyst Stacy Rasgon, for example, recently maintained his “outperform” rating on Nvidia. He also raised his price target on the shares from $265 to $300. Ragson asserts that Nvidia’s earnings estimates have an “upward bias” from now on. The Bernstein analyst also assures that Nvidia shares are the “best way” to play the AI theme.

Meanwhile, Piper Sandler analyst Harsh Kumar values Nvidia based on the company’s foray into the software market. Kumar believes that Nvidia “has the ability to create new and lucrative market opportunities with its software footprint which is still in its early stages of growth and adoption.” With that commentary, the Piper Sandler analyst reiterated his “overweight” rating on NVDA stock and raised his price target from $275 to $300.

What You Can Do Now

Nvidia already looks like 2023’s big winner in AI hardware. The company is also venturing ambitiously into the software market, so that’s another opportunity for Nvidia to generate strong revenue.

As the year progresses into its second quarter, Nvidia should continue to impress analysts and investors alike. Therefore, expect NVDA stock to maintain its powerful momentum and consider a share position now.

On the date of publication, Louis Navellier had a long position in NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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