Valued at a market cap of $3.2 trillion, Santa Clara, California-based NVIDIA Corporation (NVDA) stands as a global leader in visual computing and the inventor of the GPU. This innovation has reshaped multiple industries, including gaming and artificial intelligence. NVIDIA has cultivated strong partnerships with cloud service providers and major technology firms, fostering ongoing advancements in AI, professional visualization, and networking.

As a “mega-cap” stock, companies valued over $200 billion, NVIDIA easily meets this criterion. Over the past 30 years, it has transformed computing through innovations such as the GPU, CUDA, AI breakthroughs, RTX real-time ray tracing, and the Omniverse platform. Today, NVIDIA supports over 4 million developers and 40,000 companies worldwide.

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The semiconductor company recently faced a decline, pulling back by 14.3% from its 52-week high of $153.13. In the last three months, shares of NVDA are down 4.1%, underperforming the broader S&P 500 Index’s ($SPX) 1.1% decline during the same period.

Looking at a longer-term view, shares of NVDA have dipped 2.2% year-to-date, lagging behind SPX’s 1.3% rise. However, NVIDIA has soared nearly 66% over the past 52 weeks, significantly outperforming SPX’s 17.5% gain.

Encouragingly, NVDA has maintained a bullish outlook, consistently trading above its 200-day moving average since last year. Its standing above the 50-day moving average, however, has varied in recent weeks.

Shares of NVDA rose 3.7% on February 26 after the company announced a record Q4 revenue of $39.3 billion and earnings of $0.89 per share, exceeding analyst predictions. Notably, data center sales nearly doubled to $35.6 billion, prompting investor enthusiasm around NVIDIA’s robust AI-driven growth, underpinned by significant partnerships with Amazon and Microsoft. The company’s guidance for Q1 FY26 indicates projected revenue of $43 billion, which suggests a remarkable 65% year-over-year growth and reinforces confidence in the demand for its AI chips.

Furthermore, NVIDIA’s competitor, Broadcom Inc. (AVGO), has experienced a 62.7% surge over the past 52 weeks, but has seen an 8.2% decline year-to-date, trailing NVIDIA’s strong performance in both timeframes.

Given NVIDIA’s impressive year-long trajectory, analysts retain a positive outlook on the stock. It holds a consensus rating of “Strong Buy” from the 43 analysts who cover it. As of now, NVDA is trading below the mean price target of $177.19.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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