NVDA stock continues to move higher and is up another 4% after an analyst at Morgan Stanley upgraded the stock to overweight from equal weight.

Moore estimates that NVIDIA Corporation (NASDAQ:NVDA) will “return to solid growth” in both gaming and data center, after both segments underperformed in the previous year.

“As we look into 2020, we see catalysts for Nvidia’s growth accelerating on nearly every vector, even in what we expect will be a tough semiconductor environment,” he wrote.

NVDA Stock Bounces Back on Earlier Losses

In September last year, NVIDIA stock was trading at around $280. However, after disappointing earnings guidance and concerns regarding the tariff war between the US and China, the stock plunged to $133 in subsequent months.

At the beginning of this year, the stock had started gaining, climbing to $190 but it also dropped 30% through the second quarter. This was after the company reported abysmal YoY results showing weakness in demand for its products. NVDA stock has since rebounded from earlier losses, climbing to $220.

The company has a huge product base, giving it access to various end markets through which it can sustain demand growth going forward. The growth of various segments such as IoT, 5G deployment, the proliferation of AI and gaming, and crypto mining, as well as autonomous vehicles, might help support NVIDIA’s revenue. These are market trends that may not change anytime soon and thus the reason to be bullish about the prospects of the company.

NVDA stock is up 4.58% at $220.55 and made a 52-week high of $221 earlier in the session.

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The exceptional performance and solid financial position explain the valuation of the company. It shows that NVIDIA is optimally using resources to earn profits. It is expected that NVIDIA will continue sustaining the strong performance going forward as it establishes itself as a market leader in the semiconductor industry. Any challenges that NVIDIA might face going forward will be an entry point opportunity for NVDA stock.

NVDA stock has bounced from losses at the beginning of this year, and so far, the tech stock is up 65% year to date.

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