Nvidia (NASDAQ:NVDA) has been a powerhouse in the chip stock sector for some time now, experiencing a frantic run-up. And while some are looking for the equally frantic run down to kick in, many others are looking for it to carry on. A recent accolade Nvidia took home proves that much, and Nvidia gained nearly 7% in the closing minutes of Tuesday’s trading.
Nvidia is at the top of the Interactive Brokers (NASDAQ:IBKR) most-active list of traded symbols and is apparently in there quite “firmly,” reports noted. Nvidia actually managed to briefly become the most valuable publicly traded company on Earth after it hit a market capitalization of $3.35 trillion and then some.
However, that high didn’t last, and ultimately, Nvidia slid back over 12% across three days’ worth of trading, taking around $430 billion in value with it.
Rising Competition
Meanwhile, several firms have been coming to take a piece of the pie from Nvidia. There has been an increase in sentiment that suggests Intel could pull off a come-from-behind win thanks to its low valuation and potential for future sales. Indeed, recent word emerged about a start-up from a trio of Harvard dropouts called Etched, which just raised $120 million on the proposition that it could make a chip that’s a match for Nvidia’s lineup.
Of course, it will also have to make one that’s a match for Intel’s, as there are signs the Gaudi 3 might already be an Nvidia killer in some respects.
Is Nvidia a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 38 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 210.93% loss in its share price over the past year, the average NVDA price target of $156.35 per share implies 24.23% upside potential.
