Buying NVIDIA stock with $230 in view

Over the past few weeks, NVIDIA shares have dropped around 10%, reaching the critical support level of $200, thereby creating a favorable long-term entry point for buyers.

On the fundamental front, the company looks strong. Its latest quarterly report set an even more ambitious revenue goal for the next period—$91 billion—exceeding market expectations. And that’s not all. The tech firm also announced an $80 billion share buyback program.

The data center segment remains the key engine behind NVIDIA’s impressive financial results. Demand for processors used to train and run artificial intelligence (AI) models is still extremely high. Another positive factor for the company’s shares is the emergence of major infrastructure projects. For example, OpenAI is now considering leasing a large-scale data center in Ohio, with possible NVIDIA’s support and oversight, which would address the market’s long-term need for computing power.

However, there are some risks. First, the US continues to tighten controls on the supply of AI chips to Chinese firms, including potential workarounds involving foreign entities. This fact limits NVIDIA’s sales in the Asian country and could weigh on its revenues. Besides, China is currently working on a massive project aimed at developing its own AI infrastructure using local suppliers. This could mean stronger competition in the long run.

All in all, the fundamental landscape for NVIDIA looks optimistic. Following a recent drop to $200, it appears to be a smart move to invest in the company’s stock.

The final recommendation:

— Buy NVIDIA at the current price, targeting $230 within a couple of weeks.

— Place a Stop Loss order at $195, slightly below support, to manage risks if the market moves against us.