Nvidia (NASDAQ:NVDA) stock has had a turbulent start to the year, with shares down 43% since the beginning of 2022. Despite this, the chip maker’s stock has jumped in recent weeks as investors anticipate a rebound in the company’s fortunes. With its leadership in semiconductors for artificial intelligence applications, the company is well-positioned to benefit from the increasing demand in the sector.
Growth and technology investors have been anxiously awaiting the return of stock like Advanced Micro Devices (NASDAQ:AMD), and this could be the perfect opportunity for them to jump in. Nvidia's stock has shed more than 40% of its value so far in 2022, but one analyst believes that now is the time for investors to get on board. Shares of the company rose 3.06% to $180.72 on Tuesday, in what proved to be an all-around favorable trading session for the stock market.
The chip maker’s stock is being buoyed by its leadership in AI-based products. Its GPUs are widely used in AI applications, including autonomous vehicles, medical imaging and digital assistants. The company’s innovation in the field has allowed it to remain a leader in the industry, and its products are being used in a variety of applications.
Furthermore, the company’s GPUs are being used in gaming applications, and this has been a major source of revenue for the company. The gaming market is expected to remain strong, and this could be a major source of growth for the company. Additionally, the company is also focusing on developing AI-based solutions for enterprise applications, which could further boost its revenue.
Shares of Nvidia have seen a major rally in recent weeks, as investors anticipate a comeback for the chip maker. The company’s recent quarter results showed that its AI-based solutions continue to be in demand, and this could be a major catalyst for its stock. Additionally, a broad cross-section of stock have been rising in recent days, including that of Advanced Micro Devices and Nvidia.
Yahoo Finance Live’s Brad Smith recently broke down the stock that are moving after the opening bell. He highlighted Nvidia’s stock as a potential opportunity for investors, citing the chip maker’s leadership in AI-based products and the potential for further growth in the sector.
Nvidia’s stock has had a rough year, but the chip maker’s leadership in AI-based solutions could spark a comeback for the company. With its products being used in a variety of applications, the company is well-positioned to benefit from the increasing demand in the sector. investors should consider taking advantage of the current rally to get on board with the company’s stock.
