Nvidia’s Stock Hits Key Support Level: What Investors Should Know

Nvidia (NVDA) has recently caught the attention of investors as it reached an important support level, signaling potential for future gains. The stock recently surged above its 20-day moving average, which points to a short-term bullish trend.

Understanding the 20-Day Moving Average

The 20-day simple moving average (SMA) is a widely used tool among traders. It tracks a stock’s price over a shorter time frame, helping to smooth out daily fluctuations. Investors often look at this average to spot potential trend reversals that might not be as apparent with longer-term averages.

When a stock’s price is above its 20-day moving average, it indicates a positive trend. Conversely, if the price dips below this average, it can suggest a downward trend.

Recent Performance and Future Outlook

Nvidia has shown a positive trajectory over the past four weeks, surging 5.3%. The company’s current Zacks Rank is #2 (Buy), indicating that it might be set for continued upward movement.

The positive momentum is supported by revisions in earnings estimates. In the last two months, there have been 2 upward revisions, while no estimates have decreased for the current fiscal year. The consensus estimate for earnings has also risen.

Given these earnings estimate improvements and the company hitting significant technical levels, Nvidia appears to be a stock worth watching for potential gains in the near term.

A New Semiconductor Star?

Zacks recently identified a new semiconductor stock that may rival Nvidia’s past growth. Although this stock is only about 1/9,000th the size of Nvidia, which saw its shares rise over 800% since being recommended, it’s positioned for substantial growth as demand for technology like Artificial Intelligence and Machine Learning expands.

Global semiconductor manufacturing is expected to surge from $452 billion in 2021 to $803 billion by 2028. This growth reflects a growing market ripe with opportunity.

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NVIDIA Corporation (NVDA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.