Josh Brown says Nvidia will be 'one of the most important tech stocks’: is he right?

Ritholtz Wealth Management CEO, Josh Brown told CNBC’s ‘Closing Bell’ on Thursday that graphics processing unit (GPU) manufacturer Nvidia Inc. (NASDAQ:NVDA) will be one of the most important technology companies of the next decade. Brown was speaking at the end of another session gain by NVDA stock, which rose 1.14%. Nvidia is now up more than 24% since 13th May and does not look likely to slow down any time soon.

Is Brown right on Nvidia?

Nvidia enjoys a strong business moat in the GPU market. The company has expanded its addressable market to include the crypto mining industry, which has huge growth potential. The video gaming market is also expected to continue growing, and this will continue to boost the demand for Nvidia’s graphics processing units.

Shares of Nvidia currently trade at a trailing price-earnings ratio of 80.45, which looks expensive. However, its forward P/E ratio of about 39.37 suggests there is a high expectation of earnings growth next year. Therefore, it looks like there is still room left to run for NVDA stock going into the second half of the year.

The company recently announced a 4-for-1 stock split to be reflected on the NVDA shares on July 20. This could be an exciting time to buy the stock ahead of the split.

Technical overview

Nvidia shares appear to have recently bounced off the 100-day moving average in the daily chart. The stock surged to trade at a new all-time high of $690.36 on Thursday before pulling back slightly to close at $678.79. NVDA shares are now closer to crossing to overbought levels of the 14-day RSI. This explains why it pulled back slightly before markets closed yesterday.

However, the current bull run could continue based on earnings growth expectations and a rapidly growing addressable market. Investors can target profits at around $742.38 and $802.24. Key support levels can be found at $615.00 and $548.26.

Bottom line: Nvidia’s long-term future looks exciting

Josh Brown said that Nvidia would be one of the most important technology companies of the next decade. Looking at the company’s business verticals and the potential growth the markets present, he is right. Although Nvidia has gained substantially in recent weeks, there is a lot of room left to run. Now could be a good time to buy Nvidia shares.