Nvidia shares gain as ASML and Foxconn both say they still see strong signs of demand for artificial-intelligence semiconductors.

To that end, Nvidia bears frequently highlight custom AI chips from big technology companies like Amazon ( AMZN 2.48%) and Alphabet ( GOOGL -1.51%) ( GOOG -1.54%) as cause for alarm. While both companies have designed custom silicon for their data centers, recent commentary should put Nvidia investors at ease.

"Even with a decelerating growth rate on huge numbers, Nvidia's CY2025 PEG ratio stands at about 0.8x on our estimates. This ratio is 33% less than Broadcom's and the lowest in the Mag 7 by a wide margin," Reitzes said. Nvidia stock is up 197% year-to-date and trading about 2% below its record high of $149.77 per share.

Nvidia reports its much-awaited third-quarter results next Wednesday after the market close. Shares are in a buy zone. Technically, that makes Nvidia stock a buy. But investors who follow the IBD Methodology and realize there's earnings risk are wondering,

At least five research firms raised their price targets on Nvidia stock on Thursday ahead of the AI chipmaker's fiscal Q3 earnings report.