A Bull Market Is Coming: 2 Reasons to Buy Nvidia Stock Before It Skyrockets
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.
Source Fool.com
