The world's biggest autonomous driving stock isn't a big automaker like Ford Motor Co. (F) - Get Report , a tech company like Uber, or even a company somewhere in between like Tesla Inc. (TSLA) - Get Report
That's because Nvidia's chips touch pretty much every major autonomous driving program on the planet right now.
The firm already boasts partnerships with companies like Tesla, Uber and Mercedes-Benz to crack the code for self-driving cars. And its DRIVE development platform is designed to help automakers and suppliers accelerate their progress with self-driving vehicles, thanks to high powered chips and built-in software libraries for autonomous driving.
It goes beyond autonomous driving.
Nvidia is a powerhouse in the broader world of artificial intelligence thanks to its CUDA API, which is used by every major deep learning framework for hardware acceleration. In plain English, Nvidia's technology speeds up AI.
That's translated into windfall performance for investors in recent years, as Nvidia's high-dollar GPUs have found their ways from gaming PC into server farms. And that momentum story isn't showing any signs of slowing down in 2018.
In fact, Nvidia could be on the verge of a brand new breakout this spring.
To figure out how to trade it, we're turning to the charts for a technical look.
For most of 2018, Nvidia has been forming a pretty textbook example of an ascending triangle pattern, a bullish continuation setup that signals the potential for more upside ahead. That price pattern is formed by horizontal resistance up above shares at the $250 level, with uptrending support to the downside.
Simply put, as shares of Nvidia have bounced in between those two technically significant price levels, this stock has been getting squeezed closer and closer to breakout territory at that $250 price level.
When shares muster the strength to push through that $250 line in the sand, we've got a brand-new buy signal in shares.
Relative strength, measured by the side-indicator down at the bottom of Nvidia's price chart, adds some extra confidence to the upside potential for Nvidia here. The fact that relative strength has been in an uptrend of its own for the past year signals that Nvidia has been systematically outperforming the rest of the S&P 500. As long as the relative strength uptrend stays intact, Nvidia remains predisposed to keep on outperforming.
If you're looking for the next buying opportunity in Nvidia, you may not have long to wait. A push through $250 sends a message that buyers are still in control of this stock - and that it's time to join them.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.