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Why Nvidia Stock Gained 14% in March

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Shares of Nvidia (NASDAQ: NVDA) were climbing again last month as the AI leader continued to benefit from investor excitement for all things artificial intelligence.

Additionally, the company got a positive response at its annual developer conference and enjoyed some momentum at the beginning of March from its strong fourth-quarter earnings report in February.

According to data from S&P Global Market Intelligence, Nvidia stock finished the month up 14%. As you can see from the chart, there wasn't a defining trend for Nvidia last month, though it got a strong start out of the gate.

NVDA Chart

NVDA data by YCharts

AI is still hot

Nvidia has emerged as the leader of the AI boom, as the company's GPUs (graphics processing chips) and Superchips have been in such high demand that it's been unable to fill it.

Nvidia stock jumped to start March, as it seemed to benefit from a surge in shares of fellow AI winner Super Micro Computer, after that stock, which specializes in AI servers, jumped after being admitted to the S&P 500.

AI stocks have had a tendency to travel in tandem, as good news for one is often good news for another, and Nvidia and Super Micro Computer are close partners.

Later in the month, Nvidia unveiled its new Blackwell platform at its developer conference, and CEO Jensen Huang shared his vision for the company and AI in a keynote address. Nvidia said the new platform will allow organizations to run real-time generative AI for programs like large language models at up to 25 times less costs and energy consumption than the Hopper predecessor.

Nvidia also made several other announcements of new products and partnerships that left investors with the impression that the company was well positioned to maintain its lead in AI. Analysts generally weighed in on the conference with price target hikes and favorable commentary.

Finally, Nvidia stock cooled off in the last week of March on little company-specific news.

An AI chip connected to a lot of circuits.

Image source: Getty Images.

Where does Nvidia go from here?

There's no question that Nvidia is dominating the market for AI hardware, but there are a number of companies racing to try to break Nvidia's grip on the technology, including some of its biggest customers, like Microsoft, Alphabet, and Meta Platforms.

If the company can remain the clear leader in AI, the stock is likely to continue advancing, but Nvidia investors should pay attention to the competition as a serious threat could dent Nvidia's fat profit margins.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

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