When it comes to tech, it’s easy for investors to get burned. That’s because any one tech company may only play to a trend that goes in and out of fashion. Investors who jumped into alternative energy, cryptocurrencies, or anything related to electric vehicles may agree.
However, a tech company that can play to multiple trends can fare well for investors over time. That’s because it can continue to grow, even as some trends go out of favor with the market.
That’s why we’re fans of Nvidia (NVDA). The graphics card processing company has had some ups and downs with the crypto market, as its hardware can be used for mining operations. But they’re also critical for EV technology, and now the company is embracing the growth of AI.
That news gave the company a boost in shares. However, the stock is still down 12 percent over the past year, and looks undervalued relative to its growth potential. As the tech outlook turns around, Nivida could resume the massive rallies that it’s had in the past.
Action to take: Investors should accumulate shares at or under current prices. The stock pays a dividend just under 0.1 percent, so don’t rely on that for income.
For traders, the January 2024 $300 calls last going for about $25.00, offer a way to leverage the stock’s likely move higher over the rest of the year.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.