Will NVDA Stock Take Amazon’s Crown? Is Nvidia A Buy?| Investor’s Business Daily

Nvidia (NVDA) is on a tear after breaking out of a flat base Jan. 8. The company introduced new products at the consumer electronics conference in Las Vegas this week.

NVDA stock has gained nearly 10% in January alone. Is it a buy right now?

The stock is on pace to replace Amazon (AMZN) as the fourth-largest company by market cap.

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The leading maker of artificial intelligence chips disclosed Monday new GeForce graphic processors for AI-enabled laptops and PCs. It also said electric vehicles are using its automated driving system. Li Auto (LI) and other EV makers have selected Nvidia Drive Thor for their fleets.

Shares broke out on the news and have rallied 5% from a buy point of 505.48. That puts the stock on track to becoming the fourth-biggest company by market cap.

The leader in AI chips rallied 239% in 2023 and hit an all-time high 505.48 just before the year ended. Then it topped, the 505.48 buy point of its base in heavy volume on Jan. 8.

The company is expected to release its fourth-quarter results on Feb. 21.

NVDA Stock: Third-Quarter Earnings

Shares broke out of a double-bottom base just ahead of third-quarter earnings in November.

A week before reporting results, Nvidia announced at the SC23 supercomputing conference in Denver a new artificial intelligence computing platform and an advanced data-center chip. That sent the stock to its all-time high.

Despite a blockbuster quarter, shares fell after the earnings report. The company said profits came in at $4.02 a share on sales of $18.12 billion for the period that ended Oct. 29. Analysts polled by FactSet had expected earnings of $3.37 a share on sales of $16.19 billion.

Compared with the year-ago quarter, Nvidia earnings soared 593%, while sales saw a 206% spike. The period was also the second-straight quarter in which the chip leader reported triple-digit growth in both metrics.

Demand from data centers was the chief reason. Nvidia’s data-center sales jumped 279% from the year-earlier period…