Santa Clara, California-based NVIDIA Corporation (NVDA) is a key innovator of computer graphics and AI technology. The company provides graphics and compute and networking solutions. With a market cap of $3.3 trillion, NVDA develops a platform for scientific computing, AI, data science, autonomous vehicles, robotics, metaverse, and 3D internet applications.

Companies worth $200 billion or more are generally described as “mega-cap stocks,” and NVDA definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the semiconductors industry. NVDA is a trailblazer in GPU-accelerated computing, focusing on creating innovative products and platforms for gaming, professional visualization, data center, and automotive industries.

Despite its notable strength, NVDA shares slipped 12% from their 52-week high of $153.13, achieved on Jan. 7. Over the past three months, NVDA stock has gained 7.9%, outperforming the Nasdaq Composite’s ($NASX) 1.4% gains during the same time frame.

In the longer term, shares of NVDA rose marginally on a YTD basis and climbed 18.4% over the past 52 weeks, outperforming NASX’s YTD dip of 1.1% and 12.2% return over the last year.

To confirm the bullish trend, NVDA is trading above its 200-day moving average since mid-May. It has been trading above its 50-day moving average since early May.

NVIDIA’s strong performance in Q1 can be attributed to the growing demand for its high-powered chips used in AI technology. Despite trade war concerns, the company's revenue continues to soar, driven by investments from tech giants like Microsoft Corporation (MSFT), Alphabet Inc. (GOOGL), and Meta Platforms, Inc. (META). With a dominant market share in GPUs and a strong position in AI infrastructure for cloud computing stocks, NVIDIA is expected to see further growth in the future. The company's technology is also being used by Tesla, Inc. (TSLA) in its self-driving cars and autonomous robots, positioning it for success in the next phase of the AI revolution. 

NVDA reported its Q1 results on May 28, after the market close. Its adjusted EPS of $0.81 fell short of Wall Street expectations of $0.85. The company’s revenue was $44.1 billion, beating Wall Street forecasts of $42.9 billion.

NVIDIA’s rival, Advanced Micro Devices, Inc. (AMD) shares considerably lagged behind the stock, with a 6.6% decline on a YTD basis and a 34.2% loss over the past 52 weeks.

Wall Street analysts are bullish on NVDA’s prospects. The stock has a consensus “Strong Buy” rating from the 44 analysts covering it, and the mean price target of $167 suggests a potential upside of 23.9% from current price levels.