Nvidia () is the IBD Stock Of The Day as the graphics-chip maker closes out a landmark year thanks to white-hot demand for its processors and their artificial intelligence applications. NVDA stock is approaching its latest buy point.

Nvidia shares have formed a flat base with a buy point of 505.48, according to IBD MarketSmith charts. That buy point is also the stock's all-time high, reached on Nov. 20. On Nov. 9, NVDA stock broke out of a double-bottom base with an entry of 476.09, MarketSmith charts show, and it remains in that buy zoneMumbai Investment. But the stock now has formed an additional base in the interim.

On the stock market today, NVDA stock traded flat to close at 495.22.Jaipur Investment

Year to date, Nvidia stock has rocketed more than 235% following two quarters of massive sales and earnings growth. That growth was fueled by cloud service providers and other enterprises buying Nvidia's graphics processing units to run generative artificial intelligence applications.

But Nvidia will face increased competition in the AI chip market in the year aheadBangalore Investment. Rivals Advanced Micro Devices () and Intel () recently launched their own AI accelerators.

On Thursday, Nvidia introduced a modified version of its latest gaming chip designed to comply with U.S. export controls targeting China, Reuters reported. The GeForce RTX 4090 D gaming chip will be available to Chinese customers starting in January, Nvidia said.

U.S. trade restrictions seek to block China from gaining access to advanced processors and technology for artificial intelligence. The Biden administration is concerned that China's military will use the technology.

In response, Nvidia is developing less-capable versions of its gaming cards and graphics processors to sell in China.

The next catalyst for NVDA stock could be Nvidia's announcements at the CES 2024 tech trade show. Nvidia is holding an online event on Jan. 8, a day before the conference officially opens.

NVDA stock is on three IBD stock lists: IBD 50, Leaderboard and Tech Leaders. Nvidia also is one of the Magnificent Seven stocks that have driven the stock market higher this year.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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