Sign InNVIDIA Corp Expected to Test Resistance Level and Continue Bullish Trend
Summary
As of August 14, 2023, NVIDIA Corporation (NVDA) exhibited positive growth with a 7.09% increase in its stock price, receiving interest from market leaders and analysts predicting a potential price consolidation above its DCF valuation, leading to a final evaluation of 'Buy'.
Overview of NVIDIA Corporation
As of the last close on August 14, 2023, NVIDIA Corporation (NVDA) exhibited a closing price of $437.53, an increase of $28.98, representing a 7.09% positive change. The stock observed a low and high trading price of $403.12 and $438 respectively over the day. For the past year, the trading prices ranged between a low of $108.13 and a high of $480.88. The company currently markets at a cap of $1.08 trillion.
It observed a trading volume of 66.1 million shares versus the average trading volume of 50.62 million. For the day, the relative strength index (RSI14) noted was at 42, which does not indicate oversold or overbought conditions. The 50-day and 200-day moving averages are $430.89 and $272.52 respectively, indicating bullish momentum over a long-term period.
The company's MACD (3-month) of 5.44 suggests a bullish trend. Its ATR stands at 3.90, an indication of the stock's volatility. The immediate support and resistance levels are at $401.11 and $443.09 respectively. Operating on the NASDAQ exchange, the company has an EPS of $1.91 and a PE ratio stands high at 229.07. NVDA possesses a total of approximately 2.47 billion outstanding shares.
News Impact & Earnings Announcement
Recently, key market players have shown interest in NVIDIA. Notably, Dan Loeb's Third Point LLC constructed new positions in NVIDIA Corp during the latest quarter. Similarly, David Tepper's Appaloosa LP unveiled new positions, reflecting a positive sentiment towards NVDA. Additionally, NVDA's stock jumped by 7% due to a Morgan Stanley upgrade as the company rides the A.I. wave. This acceleration in interest among market leaders signals the growth potential of NVIDIA Corp. The company is expected to announce earnings on August 23, 2023.
Analyst Sentiment and Price Targets
Currently, 36 analysts recommend a 'Buy', three advise to 'Hold', and one indicates 'Sell'. Overall the consensus lies in 'Buy' territory. Meanwhile, with respect to price targets, the stock demonstrates a high target of $600, a low target of $133, and a median of $240. The consensus target remains at $277.2.
Discounted Cash Flow (DCF) Valuation
The DCF valuation of the stock is at $438.88, closely matching the current price.
Prediction for Next Trading Day and Upcoming Week
Considering the current momentum, the recent positive news, and analyst sentiment, the price on the next trading day, August 15, 2023, could test the resistance level of $443.09.
For the upcoming week, considering the bullish trend indicated by the moving averages, MACD, and strong support beneath, the price might consolidate above the DCF valuation of $438.88 and march towards the resistance level.
Final Evaluation
After considering the above factors, the final evaluation categorizes the NVIDIA Corporation stock as a 'Buy'. This recommendation is due to the strong technicals, recent increase in positions by major players, potential AI-driven growth, and positive analyst sentiment. However, a high PE ratio suggests a cautionary note about the stock's valuation. It is essential to consider all risks and overall market conditions before making a decision.
