It's been a solid year for shares of Nvidia Corporation (NASDAQ: NVDA). Having had a stellar 2023, they've already tacked on an impressive 100% value since January. Helped by a perfect combination of falling inflation, a market-wide risk-on sentiment and a booming AI industry, they've become one of the hottest stocks to talk about and own. 

With a high in yesterday's session of just under $960, expectations are growing for the tech titan's stock to hit 4 digits soon. This can be a big milestone in a stock's journey, and those that make it there are few and far between. Investors should be getting excited, though, and here are 3 reasons we think it's on the verge of happening. 

Strong Fundamental Momentum

First up are the fundamental drivers behind the company's growth and strong momentum. These include the strength of Nvidia's data center business and its bullish exposure to the AI industry. Just yesterday, the team at UBS Group included Nvidia near the top of a list of stocks they see as extremely well-positioned to benefit from the artificial intelligence boom in the coming years. 

With global AI revenue set to hit $400 billion by 2027, first-mover advantage counts more than ever, and Nvidia has that. It's one of the reasons the company has a current quarter-on-quarter revenue growth rate of more than 20%, which becomes nearly 400% yearly. 

And the most amazing thing is that Nvidia's valuation, as seen through its price-to-earnings (PE) ratio, isn't even that extended right now. At just 79, it's well below the 150 it spent much of last year at. 

Bullish Analyst Upgrades

The other factor to consider is all the analysts coming out with red hot Buy or Outperform ratings right now, even after all the recent gains. This past week alone, the teams at Wedbush, Wells Fargo and Jefferies Financial Group all reiterated their bullish ratings on the stock, while giving it a price target of $1,000 or above. 

Jefferies, for example, gave Nvidia a boosted price target of  $1,200, which was more than a 50% jump from where they had it previously. That's pointing to an immediate upside of 25%, which is not bad for a $2.3 trillion company. 

This isn't a new trend that simply echoes the rating updates and price target increases of recent weeks and months. Indeed, every price target update since the last week of March has been at $1,000 or more. This kind of bullish outlook should be reassuring for investors on the sidelines who might think that they missed the boat by not getting involved last year. In many ways, you could argue that Nvidia's growth story is still in its infancy. 

Impressive Technicals

The final reason to think that Nvidia will soon be trading for more than $1,000 is that the stock's relative strength index (RSI) is nowhere near overbought levels. This is remarkable after a 750% rally in the past 18 months. It helps that the broader market, in general, took a bit of a breather last month, as this removed any concerns about Nvidia's stock becoming frothy. 

But even with it having gained 25% since the back half of April, its RSI is still only around 60. This confirms the momentum is bullish while making it clear the stock still has much room to run before anyone could call it overbought. 

With less than a 10% jump needed to take it above $1,000 for the first time, you'd have to be exceedingly bearish to think we won't see this milestone being hit in the short-term and that the stock won't continue to rally north.