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Nvidia Stock: AI Giant Reveals Buy Point and Google Deal, but Market Concerns Remain

Ask for artificial intelligence giants Nvidia (NVDA) and Alphabet (GOOGL) remains clear. Both stocks have earned spots on exclusive stock lists, including the Investor’s Business Daily Breakout Stocks Index. Additionally, Nvidia and Google Cloud announced a partnership in generative AI earlier this month, as Nvidia stock sets a new buy point and Google stock remains within buy range.


Led by Nvidia, several Magnificent Seven stocks topped the list of new purchases by top mutual funds this month. These top money managers put a whopping $12.3 billion into Nvidia stock. They also raised $3.7 billion from Alphabet.

Also seeing an impressive capital inflow was Microsoft (MSFT) with $11.4 billion and Metaplatforms (META) with just under $7 billion.

So while institutional demand for Nvidia, Alphabet and these other tech titans remains strong, the tech-heavy Nasdaq is under pressure. The Nasdaq has fallen below the 21-day exponential moving average and the 50-day line. It also failed to maintain the 16,000 mark.

As market indexes have retreated below key moving averages, IBD has lowered the recommended market exposure level, which is now 20%-40%.

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Individual stocks don’t operate in a vacuum, so keep an eye on the overall market indexes as you measure the performance of Nvidia stock, Google and others.

See who joins Nvidia and Google on the IBD Breakout Stocks Index

Stock lists put Nvidia and Google in the spotlight

In addition to making this week’s Breakout Stocks Index and this month’s list of new buys by top funds, Nvidia also created a trifecta on the IBD stock lists. The AI ​​powerhouse has earned a spot on the IBD 50, IBD Big Cap 20 and IBD Sector Leaders, our most stringent screening.

Google stock is on the IBD 50 and IBD Big Cap 20, alongside fellow Magnifcent Seven stock Meta.

AI collaboration: Nvidia partners with Google Cloud

On April 8, Nvidia and Google Cloud announced a partnership in the field of generative artificial intelligence. The partnership, which was unveiled at Google Cloud Next ’24 in Las Vegas, aims to help startups around the world accelerate the creation of generative AI applications and services.

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The new initiative combines Nvidia Inception with the Google for Statups Cloud Program, aiming to broaden access to cloud credits, go-to-market support and technical expertise.

Meanwhile, Google unveiled a new “A3 Mega” AI processor that uses Nvidia’s H100 technology. Google said it plans to use Nvidia’s next-generation Blackwell platform in early 2025.

In addition to these collaborations with Nvidia, Google is also expanding its internal development of AI chips using semiconductor architecture Arm positions (ARM).

Nvidia Stock Etches Buy Point, Finds Support

Last week, Nvidia completed a new flat base with a buy point of 974. It is the first base since Nvidia launched a new breakout in January and soared to record highs.

Thanks to strong institutional demand and forecasts of 469% earnings growth in the coming quarter, Nvidia has kept support above its 10-week moving average. After closing just above the 21-day limit on Tuesday, the stock fell below the 21-day limit again early on Wednesday.

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Google stock managed to hold the support above the 153.78 buy point and remains within the buy range.

IBD Breakout Opportunities ETF

Innovator Capital Management’s IBD Breakout Opportunities (BOUT) exchange traded fund tracks the IBD Breakout Stocks Index. Like other index ETFs, this fund allows you to invest in the entire index in addition to or instead of buying individual stocks. Read more about the ETF and Innovator here.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.


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