Why NVIDIA Corporation (NVDA) Is Skyrocketing - InvestingChannel

Why NVIDIA Corporation (NVDA) Is Skyrocketing

We recently compiled a list of the Why These 10 Stocks Are Skyrocketing. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other stocks that are skyrocketing.

Wall Street saw a quiet trading session this week amid the lack of major catalysts to perk up the market. Despite an overall thin trading volume, 10 companies managed to outperform and mirror gains of all major indices.

To come up with the Top 10 Gainers this week, we focused on stocks that have at least $2 billion in market capitalization and $5 million in daily trading volume.

Let’s take a look at NVIDIA Corporation (NASDAQ:NVDA) and how it has performed so far.

Why Nvidia (NVDA) Stock Is Declining Again Today

NVIDIA Corporation (NASDAQ:NVDA)

Semiconductor giant NVIDIA Corporation (NASDAQ:NVDA) opened the week at $136.4 each and ended Tuesday at $140.22 apiece, marking an increase of 2.8 percent during a quiet trading session.

Analysts said that investor optimism was fueled by news that the company raised as much as $30 million from the sale of additional clusters to Hive Digital Technologies. According to reports, the purchase was aligned with its goal to strengthen its position in artificial intelligence (AI) and high-performance computing (HPC) and enhance its role in the digital transformation landscape.

Nvidia (NVDA) also remains to be the biggest beneficiary in the ongoing AI boom, with more cloud vendors and internet companies continuing to purchase its graphics processing units. Due to advancements in AI, Nvidia has already perked up its annual revenues by 94 percent in the past six quarters, with growth exceeding 200 percent three times in that stretch.

Overall, NVDA ranks 9th on our list of stocks that are skyrocketing. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.

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