Sign InSummary
On November 30, 2023, NVDA closed at $467.70, with the stock trading above both the 50-day and 200-day moving averages, signaling a mid-to-long term bullish trend, although it is close to a resistance level of $469.50, which may indicate a continuation of the bullish trend if broken, but a failure to break this level could suggest consolidation or a pullback, and with a PE ratio of 61.87 and a robust market cap, analysts' consensus leans towards a 'Buy' rating, although the target consensus is below the last close price, indicating mixed sentiment.
Technical Analysis
NVDA experienced a decrease of $13.70 (-2.85%) to close at $467.70 on November 30, 2023. Despite this, the stock is trading above both the 50-day and 200-day moving averages, with values of $449.88 and $379.70 respectively, signaling a mid-to-long term bullish trend. The MACD (Moving Average Convergence Divergence) sits at 29.90, which is traditionally an indicator of bullish momentum over the past three months. It is noteworthy, however, that the current price is very close to the immediate technical resistance level of $469.50. If the stock can break and hold above this level on the next trading day, it may indicate a continuation of the bullish trend. Conversely, a failure to break this resistance might suggest impending consolidation or a possible pullback.
The RSI (Relative Strength Index) is currently at 49, which suggests that the stock is neither overbought nor oversold. NVDA's ATR (Average True Range) indicates a moderate price volatility level, suggesting that the stop-loss at $444.80 adequately provides some cushion against potential downside risk, sitting just below the identified support level of $439.38.
The recent Golden Cross signal, where the stock surpassed the 20-day moving average, proposes short-term bullish momentum, which could attract more buyers in the next trading session.
Fundamental Analysis
NVIDIA Corporation (NVDA) sports a robust market cap of approximately $1.16 trillion, reflective of investors' high confidence and the substantial size of the company in the technology sector. The stock's PE ratio stands at 61.87, which can be perceived as relatively high, signifying that investors are willing to pay a premium for future growth expectations.
Analysts' consensus on the stock swings towards a 'Buy' rating, with 35 analysts recommending a 'Buy’ and no strong opposition, showing broad market optimism. Meanwhile, the target consensus ($435.17) is below the last close price, setting a mixed signal for its valuation prospects.
With an EPS of $7.56, NVDA displays strong profitability, and investors are likely eyeing the upcoming dividends on December 28, 2023, although with a negligible yield of 0.01%, the dividend is not the main attraction. The upcoming earnings announcement on February 21, 2024, will be pivotal in shaping future sentiments and should be attentively observed by shareholders and potential investors.
Recent news highlights NVDA's involvement and increased collaboration with Hewlett Packard Enterprise in AI, showcasing its strategic initiatives in high-growth areas. NVDA's presence in the machine learning and robotics sector positions it well as automation continues to be a driving force in technological advancement.
Performance Predictions
For the next trading day (December 01, 2023), bullish sentiment may continue if it breaks through the resistance level of $469.50. However, consolidation around the resistance level might also occur, leading to a more range-bound performance as investors digest recent volatility and the technical indicators.
Over the upcoming week, NVDA's performance could be affected by the general market climate and any sector-specific news. Assuming no disruptive news or market anomalies appear, a positive bias may persist due to the recent technical signals and underlying strength shown in the fundamentals.
Overall Stock Evaluation
Considering the mixed signals provided by the trading position relative to the analysts' target consensus and the substantial 'Buy' recommendations by market analysts combined with strong fundamentals and positive technical indicators, a 'Hold' rating is appropriate for NVDA at this moment. Investors who currently own the stock may want to maintain their positions to benefit from the company's long-term growth prospect in AI and automation sectors. New investors might wait for a clearer bullish signal or for any potential pullbacks that would provide a more attractive entry point. Further market developments and upcoming earnings reports could significantly influence the evaluation and necessitate a re-assessment.
