Shares of Nvidia (NASDAQ: NVDA) have been in red-hot form over the past three months, with the chipmaker's stock rising 50% as investors seem to have regained confidence in semiconductor stocks following a terrible 2022.

The PHLX Semiconductor Sector index is up an impressive 25% in the past three months, which might seem a tad surprising given the bleak semiconductor industry outlook for 2023. Gartner, for instance, forecasts a 3.6% decline in global semiconductor revenue this year.

Does this mean that Nvidia's rally could be cut short, especially considering the massive headwind it faces in the form of weak graphics card demand? Or should investors continue buying the stock in the hope that the chipmaker will sustain its momentum and crush the market in 2023? Let's find out.

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Source Fool.com