artificial intelligence stocks Nvidia (NVDA) and Arista Networks (ANET) leads this weekend’s watchlist of five stocks close to buy points. In addition to NVDA stocks and ANET, the group includes: data dog (DDOG)’s computer network monitoring software business should be accelerated by the introduction of AI.
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Credit card processing giant master Card (MA) and Dexcom (DXCM), the leader in blood glucose monitoring systems for diabetics, rounds out the list.
DDOG stock is part of the IBD 50 list of leading growth stocks and NVDA is part of the IBD Leaderboard portfolio of elite stocks.
For now, the stock market’s strong rally remains intact after Wall Street dodged a possible bullet in Friday’s jobs report. A sharp downturn in private-sector job growth and a cap on the 10-year Treasury yield spike should keep the Fed from panicking about the inflation outlook.
Nvidia and these other stocks have been flat in recent days and weeks, largely because the market as a whole has been range bound since mid-June. So make sure he reads IBD’s The Big Picture daily to get a sense of where the market is heading and what it means for your trading decisions.
nvidia stock
NVDA shares are ramping up to meet massive demand for AI-enabled chip technology, and thanks to blockbuster guidance on May 24, NVDA shares are among the top performers in the S&P 500 index this year, gaining 191%. I’m here.
Nvidia forecasts second-quarter revenue of $11 billion, up 64% year-over-year, beating out Wall Street’s consensus forecast of $7.2 billion.
NVDA shares surged 24% in the next trade and continued to climb. That’s despite news in late June that the Biden administration was moving to tighten restrictions on AI-enabled chips in China.
But even in the midst of all this negative news, NVDA shares are in a tough spot. In each of the last three weeks, the NVDA stock price has risen or fallen by less than 1.5%, marking a tough four-week pattern. A new buy point will be established if NVDA shares break above the upper end of the 439.90 range. Investors may use Friday’s high of 432.14 as an early entry.
Still, if Nvidia takes time to digest its big gains and carves out a new base, it could be a more constructive entry for investors. A gradual pullback to the 21-day exponential average could also be a breakthrough.
ANET Stock
Arista sells computer network switches that accelerate communication between racks of computer servers packed into “hyperscale” data centers. In 2022, Facebook’s parent company meta platform (META) accounted for 26% of Arista’s revenue, microsoft (MSFT) decreased by 16%.
Following Nvidia’s second quarter guidance, ANET shares rose 23.5% in three sessions. The demand for AI chips is seen as a precursor to the demand for more computer network bandwidth.
Still, it remains to be seen how quickly AI will impact the networking space.
At JP Morgan’s tech conference on May 23, Aita Brennan, chief financial officer of Arista, spoke cautiously about the potential evolution of AI.
“We have introduced several AI use cases, but they are relatively small. We see this as good support for future momentum and demand, especially from some large hyperscale customers. thinking about.”
After ANET shares broke the buy point of 171.44 in the late May surge, the stock fell below the 50-day moving average before rebounding. For the past few days, ANET shares have found support on the 21st line. A move up from here could serve as an entry point as ANET shares break out of the downtrend line from the May 30 high.
The network giant also has a new base with 178.36 buy points.
DDOG strain
Datadog operates a monitoring and analytics platform for software developers and information technology departments. The company has partnered with Amazon Web Services, its cloud computing division. Amazon.com (AMZN).
Concerns about slowing growth in cloud computing weighed on Datadog shares in the first half of 2023, but rising AI workloads should keep demand for the company’s services up.
The DDOG strain carved out a long handle cup base of 47 weeks. DDOG’s buy point is 103.80, which is the top of the handle he was touched on June 2nd. Investors can also see the handle as its own flat base just above his early May cleared trough base. DDOG shares rose 1% to 98.02 on Friday. , about 6% away from the buying zone.The stock briefly broke through the 100 level, which had been a resistance line
mastercard stocks
mastercard and rivals visa (V) has shown strength amid a weak consumer economy and financial stocks struggling. However, as payment processors, they incur transaction fees but are not exposed to credit deterioration. In addition, entertainment and travel are still recovering, making cross-border transactions particularly profitable for credit card processors.
On Friday, Moffett Nathanson analyst Lisa Ellis raised Mastercard’s price target to 490 yen from 460 yen, maintaining an outperform rating. She cited “a long road of cash outflows from consumers to businesses, visible progress in new payment streams (and a moat of competition reinforced by the pandemic),” she said.
MA shares traded at a flat base buy point of 392.20 in recent trading, but closed 1.1% lower at 388.68 on Friday.
Dexcom stock
DexCom updated its long-term financial outlook on June 23, saying it expects revenue to increase from $4 billion to $4.5 billion in 2025, and from $4.6 billion to $5.1 billion. This compares to $2.91 billion in 2022.
The stock initially retreated to the 50-day moving average, but found support and regained the buy point at 126.44, according to MarketSmith analysis. DXCM shares fell 0.8% to 126.71, but are still in buying territory. DexCom has rebounded from the intraday 21-day line in recent trading.
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