Nvidia Stock Highlights Buy the Dip Targets from the Tech Sector

Nvidia NVDA stock has fallen more than 10% from its 52-week and all-time high of $212 a share (post-split basis), which it hit at the end of last month.Furthermore, as the market toggles back in forth with bubble fears or if the AI revolution still justifies supreme valuations, this pendency may be overdone for Nvidia.This is especially the case given Nvidia’s ongoing chip dominance and unprecedented expansion. That said, here are three primary reasons as to why this looks like an appealing time to buy NVDA on the dip.  1. Nvidia Reports Next Week  The buy-the-dip scenario looks even more enticing with the AI chip leader set to release Q3 results next Wednesday, November 19. And of course, NVDA is known to surge when posting blowout results and inspiring guidance.Keeping this in mind, Nvidia is expected to report a quarterly revenue record of $54.59 billion, a 55% increase from $35.08 billion last year and a 17% increase sequentially after delivering an all-time high in Q2 sales. Even better, Nvidia's quarterly EPS is expected to leap over 50% as well to $1.24. Plus, the Zacks ESP (Expected Surprise Prediction) indicates Nvidia could top earnings expectations with the Most Accurate and recent estimate among Wall Street analysts having Q3 EPS pegged at $1.28 and 3% above the underlying Zacks Consensus (Current Qtr below).  Image Source: Zacks Investment Research 2. Nvidia’s Favorable Technical AnalysisIf you're like me, you may have been able to eyeball buy spots for NVDA, which has appeared to be in the $179-$180 range on these recent pullbacks. The brief dip to this range happened again in Friday’s trading session, and buyers swiftly swooped in... again.To that point, despite these intraday lows, NVDA is signaling a short-term uptrend as it has still closed above its 50-day moving average (green line) since catapulting to new highs in October, with this gauge price currently at $185 a share.Image Source: Zacks Investment Research 3. Nvidia’s P/E Valuation is ReasonableGoing back to the case that bubble fears are overdone, at 41X forward earnings, NVDA is not trading at an overly stretched premium to the benchmark S&P 500 while being pleasantly below its decade-long median of 45X and high of 118X during this period.Oh, and this makes it a noteworthy time to mention that Nvidia’s stock gains in the last 10 years is an impeccable +24,000%.Image Source: Zacks Investment Research Conclusion & Strategic ThoughtsGetting an opportunity to buy Nvidia stock on a steep pullback ahead of earnings could be a nice gift to investors. It's never a guarantee how the market will react to certain news or financial results if they are underwhelming, but Nvidia is most likely to deliver very strong quarterly results, and its stock tends to surge when it does.Quite frankly, savvy long-term investors may be looking for a further dip to build lucrative positions in hopes that NVDA eventually erupts higher if the braoder market sees the infamous end-of-the-year Santa Claus rally.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks