The jobs report from last week did a lot to boost the markets last week, and much of the enthusiasm carried on to this week as the S&P500 finally hit positive territory for the year. Amidst all that, it could be worthwhile for investors to take a closer look at some of the big-ticket tech stocks like NVIDIA Corporation (NASDAQ:NVDA).
Such large-cap stocks often benefit for significant movements in the index, and Nvidia has almost always been a favored option for many investors. It is one of the world’s biggest chipmakers, and with the rebound in the market, the Nvidia stock could see a rebound as well.
Before the coronavirus pandemic had hit, the Nvidia stock had performed impressively due to the company’s dominant position in the data center and gaming spaces. Moreover, even though the economy is slowly opening up, it needs to be pointed out that many employees are still going to work from home in order to abide by the social distancing norms. In such a situation, the demand for gaming might go up, and that could only be a good thing for Nvidia. However, there is much more to the company than only gaming or data centers.
The Nvidia stock could also prove to be a decent way for investors to have a foot in the autonomous driving, artificial intelligence, and machine learning industries. These forays could help Nvidia in maintaining significant growth over the long term and continue to reward shareholders. It goes without saying that the valuations might not appeal to many investors. However, such investors can actually go for another option. They can instead go for a marginally out of the money bull call spread in the Nvidia stock. It is a company that could continue to grow impressively in the coming years, and hence, investors could consider putting Nvidia in their watch lists.