2 Reasons to Buy Nvidia Stock, and 1 Reason to Sell
Nvidia (NASDAQ: NVDA) has been one of the top beneficiaries of exploding demand for hardware needed to handle the demands of training computers to think like humans. Last year's launch of OpenAI's ChatGPT revealed the capabilities of chatbots powered by artificial intelligence (AI).
Data centers and researchers are scrambling to buy Nvidia's advanced data-center chips and systems to realize the full potential of this technology in many areas, including product recommendations, fraud detection, cybersecurity, self-driving cars, and humanoid robots.
The surging demand has pushed the stock up 185% year to date. Shares haven't advanced in the last few months and have pulled back off their highs. The opportunity in AI could push it higher over the long term, but there's one risk investors should be aware of before buying the stock.
Source Fool.com
