Nvidia Stock Surges As AI Dominance Fuels Long-Term Bull Run: Gene Munster Waves Green Flag

Nvidia Corp NVDA has been on a rocket ride this year, with the stock up a jaw-dropping 179.86% year-to-date and 187.99% over the past year.

But if Gene Munster is to be believed, Nvidia is only getting started. In the midst of Tesla’s highly anticipated Robotaxi event, Munster had a sleeper takeaway: “Nvidia's got a long way to run.” And with a 15.31% surge in the past month, the AI chip giant is showing no signs of slowing down.

The AI Chip King Has More Room To Run

Gene Munster, co-founder of Deepwater Asset Management, has long been bullish on Nvidia, and he's not changing his tune. In a recent post on X (formerly Twitter), he noted the absence of Tesla's much-talked-about "affordable vehicle" from the event, but his enthusiasm for Nvidia was loud and clear.

The sleeper Takeaway from the Tesla event; Nvidia‘s got a long way to run.

— Gene Munster (@munster_gene) October 11, 2024

Munster believes Nvidia’s dominance in AI chips positions it for a multi-year bull run, especially as artificial intelligence becomes an even more integral part of the tech landscape.

Munster isn’t the only one singing Nvidia's praises. The stock's technical indicators are flashing strong bullish signals across the board:

Chart created using Benzinga Pro

• Nvidia stock is currently trading at $134.26, above its five, 20 and 50-day exponential moving averages, showing strong bullish momentum.
• The eight-day simple moving average sits at $128.62, while the 20-day SMA is $122.65—both indicating a bullish signal.
• Even the longer-term 50-day simple moving average of $118.29 suggests Nvidia stock momentum is strongly bullish.

Chart created using Benzinga Pro

• Nvidia stock’s Moving Average Convergence/Divergence (MACD) is 4.26, another sign that the stock is positioned for further gains.

While some may point to Nvidia's Relative Strength Index (RSI) of 66.43, suggesting the stock is approaching overbought territory, the Bollinger Bands continue to indicate buying pressure.

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AI Is The Game-Changer

Nvidia's dominance in AI chips is the real story here. The company has become the go-to provider of the computational power needed to fuel the AI revolution, and Munster believes the AI wave is far from cresting.

With companies across industries racing to integrate AI into their operations, Nvidia is well-positioned to benefit from this monumental shift in technology.

Munster emphasized that it’s still the "time to own" Nvidia stock as the AI boom is just starting to unfold.

What's Next For Nvidia Stock?

With Nvidia’s stock price riding high and technical indicators signaling continued upward momentum, Nvidia remains a favorite among investors betting on the AI revolution.

Munster's long-term view aligns with the bullish sentiment surrounding the company—Nvidia is poised to continue leading the AI chip market, making it a prime stock to watch in the coming years.

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