Did Nvidia Stock Flash A Buy Signal Yesterday? Here's Why This AMD Investor Increased His Chip Exposure

Zinger Key Points
  • Joe Terranova picked up Nvidia shares on the close Tuesday.
  • "I think that it's strategically the type of stock that you want to give consideration to here," he says.

NVIDIA Corporation NVDA shares hit 52-week lows on Tuesday before staging a strong reversal. The quick turnaround in the stock was enough to get one investor to jump into the semiconductor name.

What To Know: Virtus Investment Partners' Joe Terranova has exposure to the chip space via Advanced Micro Devices, Inc. AMD. He sold his Nvidia shares a few months back, but he's kept a close eye on the stock since.

"It's a name that I'm comfortable with. I liked the price action yesterday. I picked it up yesterday on the close," Terranova said Wednesday on CNBC's "Fast Money Halftime Report."

After opening around $141 on Tuesday, Nvidia shares bounced off the lows and trended higher, closing at the highs of the day just below $150. 

"I think that it's strategically the type of stock that you want to give consideration to here because we are making somewhat of a pivot," Terranova said.

"If we are talking about a growth scare, well you want to try and identify where you can find growth opportunities in the market."

Nvidia fits the bill for Terranova. He told CNBC that he plans to hold the stock longer term and will probably avoid trading around the position. 

Related Link: As Nvidia Stock Hovers Around 52-Week Lows, These Investors Remain Confident: Here's Why

NVDA Price Action: Nvidia has a 52-week high of $346.47 and a 52-week low of $140.55.

The stock was up 1.28% at $151.38 at press time, according to Benzinga Pro.

Photo: Courtesy Nvidia

Posted In: CNBCJoe TerranovasemiconductorsVirtus Investment PartnersLong IdeasMediaTrading Ideas

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