NVDA - A Bull Market Is Coming: 2 Reasons to Buy Nvidia Stock Before It Skyrockets
2023-04-08 10:39:00 ET
It's hard to time the market. But with inflation falling and the Federal Reserve possibly near the end of its rate-hike cycle, now could be a great time to bet on a rebound. Up a whopping 92% in 2023, shares of Nvidia (NASDAQ: NVDA) have already started surging. But the bull market could be just getting started for this innovative tech leader.
Nvidia specializes in graphics processing units (GPUs), a type of hardware used to run advanced computer processes such as gaming visuals and cryptocurrency mining . Historically, this niche has enjoyed booming growth. But it has made Nvidia's revenue highly cyclical. When the economy is strong, gamers are more likely to upgrade their rigs with top-of-the-line chips to maximize performance. But when money is tight, they tend to put off these nonessential purchases.
Likewise, in the cryptocurrency market, mining activity usually follows the boom-bust cycle in cryptocurrency prices. And after the second-largest cryptocurrency, Ethereum (CRYPTO: ETH) , moved to a proof-of-stake consensus mechanism (where mining is no longer required to mint new coins), a substantial driver of GPU demand is now gone.
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A Bull Market Is Coming: 2 Reasons to Buy Nvidia Stock Before It Skyrockets