Nvidia (NVDA) Stock Continues to Rise Amid AI Rally: Expert Says ‘There’s a Core Reason to Own’
The recent exciting uptick in Nvidia (NVDA) stock prices has been attributed to the growth of artificial intelligence (AI). However, the market expert of Commerce Street believes that owning Nvidia is a good idea for a different reason.
💡 The core reason to own Nvidia
According to commerce Street analyst, there is more to the reason why investors should own NVDA stocks than just the AI rally. Here are the main reasons:
– Nvidia is the primary video supplier in the market, providing AI solutions to everyone. Therefore, owning the stock means owning a company positioned in the fast-growing AI industry.
– The company has an advantageous position in producing money-making technologies with massive margins. This is due to the quick turnaround of accelerated computing in AI.
– AI technology is expanding into other market segments fast. Nvidia is at the center of this electrifying technology, consistently generating long-term shareholder profits.
💰 The market is balancing the AI rally and expectations of rate cuts:
AI is taking over, and the market is trying to achieve balance amidst the AI rally and market developments. Despite AI offering massive opportunities, a strong consensus persists that there will be rate cuts that will ultimately stabilize the economy. For instance, if the fed fund rate reduces to 5-5.25%, people can cope with it.
📊 Nvidia’s close competitor, AMD, soars:
The market is buzzing with the news of Nvidia stocks skyrocketing. However, Advanced Micro Devices (AMD) has gone over the roof, surpassing Nvidia’s share price. AMD has attributed this growth to its recent launch of the Ryzen 3000 series processors and Navi GPUs.
💼 All Cryptocurrency Lead to the Same Fate
During the past two years, cryptocurrency has become a significant aspect of the world economy. While each cryptocurrency brand was viewed differently before, they all lead to the same fate. Here are some reasons why:
– Cryptocurrency enthusiasts insist that values will soar indefinitely but not offer any evidence.
– Cryptocurrency prices are volatile, leading to significant financial disasters for some people.
– The value of cryptocurrency investors adding to the wealth of bitcoin holders is unstable.
– The price of cryptocurrency is uncertain, which may make it unattractive for traditional investors.
🗣️ It’s Time to Switch to Stable Coins
While cryptocurrency values are still up in the air, some players are switching to stable coins. Stable coins are digital coins backed by safer assets such as gold. Here are some reasons to switch to stable coins:
– Unlike cryptocurrency, stable coins are not as vulnerable to price manipulation.
– You do not need to worry about the inherent fluctuations of bitcoin or other cryptocurrencies.
– Stablecoins offer an extra layer of security, particularly since it is backed by secure assets like gold.
💰 Closing Figures:
Based on the market’s closing figures on July 7, 2021, the crypto world was still fluctuating, with bitcoin leaping 8.29% to reach $34,639.8. In the meantime, Ethereum, the second cryptocurrency by volume, increased by 7.29%, while Binance Coin jumped 11.19%.
🔥 Hot Take
Nvidia stock’s grow, primarily due to the AI rally, has been a topic of conversation in the stock market. However, owning Nvidia (NVDA) stocks for the AI opportunity isn’t the only reason to invest in the company. They have a tremendous lead in producing money-making technologies with massive margins. Additionally, the market is making efforts to balance the AI rally and expectations of rate cuts. On the other hand, while cryptocurrency continues to be an essential aspect of the world economy, many people have decided to switch to stable coins for added security.
By
By
By
