Nvidia, a leader in the artificial intelligence chip industry, reached a new all-time high on the stock exchange this Tuesday before slightly pulling back. Given this scenario, investors questioned whether the company could replicate its impressive 2023 performance or even the gains accumulated so far in 2024.

According to the IBD MarketSurge analysis, Nvidia shares are in a favorable buying position.

“Analysts from Bank of America have raised Nvidia’s price target from 165 to 190, while maintaining their buy recommendation,” they stated in a report issued on Thursday.

For its part, the company has shown strong market performance, achieving a perfect EPS rating of 99 and a similar composite rating. As a result, the shares are part of key portfolios such as the IBD Leaderboard, IBD SwingTrader, and the IBD 50 growth list. However, investment funds acted cautiously in their recent acquisitions.

According to the Accumulation/Distribution index, which measures fund purchases over the past thirteen weeks, Nvidia received a D- rating on a scale ranging from A+ to E.

Furthermore, major tech companies are preparing for their quarterly reports, which could influence Nvidia’s stock performance. Tesla, for example, is set to release its results on October 23, while Alphabet will report on October 29. Subsequently, Microsoft and Meta will announce their results on October 30.

“Nvidia is scheduled to present its third-quarter fiscal results on November 20,” the company announced.

In September, Nvidia saw a significant boost in the market when its CEO, Jensen Huang, along with Sam Altman, head of OpenAI, met with White House officials to discuss investment in artificial intelligence infrastructure. In that regard, it was reported that executives from Alphabet, Amazon, and Microsoft also participated.

On the other hand, Nvidia has faced certain challenges. Shares fell after ASML, a leader in chip manufacturing equipment, offered a more moderate outlook than expected. Additionally, Nvidia’s exports of advanced chips could face new restrictions, which would impact the Gulf market.

Despite these obstacles, Nvidia received a positive boost due to advancements in the production of its Blackwell chip, which is already sold out for the next 12 months. According to statements from company executives, production is progressing as planned.

“Analysts from Morgan Stanley have confirmed that two technical issues in the production of the Blackwell chip have been resolved, reinforcing confidence in the product,” they detailed in their report.

Indeed, Nvidia is also facing competition from China, which has promoted its local chip manufacturers and encouraged companies to reduce their reliance on Nvidia products. During the first half of the fiscal year, China accounted for 11% of the company’s sales.

In conclusion, Nvidia is closing in on Apple in terms of market capitalization. Currently, Nvidia is valued at $3.52 trillion, while Apple leads with $3.55 trillion. If this trend continues, Nvidia could become the most valuable company in the world.