Nvidia stock soared nearly 8% in Thursday trading, surpassing $1,020 per share after a blowout earnings report. This market expert says the semiconductor supergiant could still have more room to operate.
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“I say it’s the most important company in the world, in terms of innovation,” Jim Roppel, founder of The Roppel Report, told Investor’s Business Daily’s “Investing with IBD” podcast. He says Nvidia (NVDA) has managed to move from one technology trend to another, starting with video games, then moving to things like automotive applications and now generative AI.
Nvidia stock is emerging from a second consolidation phase that lasted 53 days with a depth of 22% according to Market surge. The stock is #1 in the Electronics-Semiconductor Fabless group and holds a Composite Rating of 99. according to IBD Research.
Audio version of the podcast episode
Generative AI could be the biggest driver of Nvidia stock to date, Roppel said. “If Cisco (CSCO) went from six cents to $65 off, a revolution in innovation, Nvidia still has a way to go,” Roppel said. “You can’t start counting from the day Nvidia entered into stock exchange, you need to start counting from the day the AI was created. relevant to their income.
Nvidia Stock Increases Semiconductor Space
Nvidia’s success has boosted the semiconductor industry as a whole, Roppel says. He noted how the VanEck Semiconductor (SMH) The ETF is seeing a 53-day consolidation in its chart pattern, with Nvidia’s earnings pushing the ETF comfortably toward its pivot point. The ETF began to consolidate in early March, with a depth of 17%.
“When I see basics like that, and then digestion, and that comes out, we’re set up for a whole different race here,” Roppel said.
The potential impact of Nvidia shares on the economy
While consumers may be struggling, Roppel notes that technological innovation and the efficiencies it introduces will likely have a deflationary effect on the market. “The major innovation cycle is healthy and prosperous.” he said.
“I really think this goose that lays the golden eggs is tearing up,” he said. “The goose that lays the golden eggs is working overtime here.”
Watch this week’s podcast featuring Jim Roppel to find out why the goose is on the loose.
Follow Mike Juang on @mikejuangnews and on the discussions at @namedvillage.
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