Nvidia Stock Is on a Fantastic Run to Start the Year, but Be Careful in This Bear Market
Nvidia (NASDAQ: NVDA) stock has been on a tear since the beginning of 2023 -- it's up 80% year to date. One key driver of that surge is that it's a leader in artificial intelligence (AI) and machine learning, and since OpenAI raised the public's awareness of how advanced AI has become with its release of ChatGPT in November, investors bid up the prices of most top AI stocks.
Investors have become so excited about Nvidia's AI-related prospects that its share price doesn't appear to have been much affected by the recent spate of issues in the banking sector, which included the second-largest bank failure in U.S. history. As a result of those bank failures, many economic experts now see a recession this year as being more likely. So considering that its stock price has run up so fast and that the economy is likely to worsen, should you buy Nvidia today or wait for macro headwinds to drive its price back down?
ChatGPT is just one of many large language models (LLMs) in AI. Nvidia defines an LLM as a deep learning algorithm that recognizes text, and can generate text, video, audio, and other content based on knowledge gained from datasets.
Source Fool.com
