10 Mega Cap Stocks Gaining Bullish Momentum This Week

6. NVIDIA Corporation (NASDAQ:NVDA)

NVIDIA Corporation operates as a computing infrastructure company and offers compute & networking and graphic solutions. The company operates in two segments: Compute & Networking and Graphics. Its products are used in data centers, gaming, automotive, and professional visualization markets.

Nvidia recently held a Q&A at its GTC event and that prompted analysts to continue their bullish view on the company. For instance, Morgan Stanley reiterated its $162 price target on the company, saying it was more positive on its prospects than before.

Nvidia also bought the synthetic data company Gretel for an undisclosed amount, though the figure is expected to be somewhere between $350 million and $500 million. As AI training models use up human-generated data, synthetic data is in demand, and Nvidia is positioning itself to benefit from that.

The stock continues to trade at an expensive valuation, though it has come to more reasonable levels recently. It now trades at a P/E ratio of 41, well below its 5-year average of 72. The price-to-cash-flow ratio of 41 is also at a significant discount to the 5-year average of 55.46.