NVIDIA Stock Surges 6.42% Amid Bullish Sentiment, Signals Potential Rebound Ahead

Technical Analysis

NVIDIA Corporation (NVDA) closed on March 12, 2025, at $115.74, experiencing a notable increase of 6.42% compared to its previous trading day. This surge reflects a potential short-term bullish sentiment. The trading volume of approximately 320.76 million shares significantly exceeded the average volume of 268.91 million, suggesting heightened interest and potential volatility. With an RSI14 of 33, NVDA is in the oversold territory, indicating a possible rebound in the short term. However, the MACD remains negative at -2.13, pointing to a continued bearish trend over the past months. The stock faces immediate resistance at $118.42 and has solid support at $114.06. Both the 50-day and 200-day moving averages, at $130.53 and $127.40 respectively, are above the current price, hinting at longer-term bearishness.

Fundamental Analysis

With a market capitalization of approximately $2.82 trillion, NVIDIA remains a dominant player in the semiconductor industry. The forward-looking expectation from analysts shows a consensus price target of $179.64, with estimates ranging from $140 to $250, indicating significant upside potential from current levels. The stock's PE ratio of 39.37 suggests it is richly valued compared to the broader market, yet it is justified given the company's growth prospects. The earnings per share (EPS) is currently at $2.94. Despite a modest dividend yield of 0.07% (based on TTM), which may not attract income-focused investors, the potential for capital appreciation could be appealing.

Intrinsic Value and Long-term Investment Potential

The DCF valuation indicates an intrinsic value of approximately $161.34, suggesting that NVDA is currently undervalued by the market. Analysts have reiterated their confidence in NVIDIA's long-term growth trajectory, fueled by advancements in AI and chip innovation. Recent positive momentum in consumer prices and bullish sentiment from large investors provide an encouraging outlook for future appreciation.

Predictions and Overall Evaluation

For the next trading day, given recent positive momentum and oversold conditions, NVDA may experience further upward movement; however, it could face resistance near $118.42. Over the next week, the stock may exhibit increased volatility due to technical barriers and investor sentiment shifts, with potential consolidation near current levels.

Overall, NVIDIA Corporation stands out as a 'Buy' candidate. Despite current technical challenges, its strong fundamental backdrop, coupled with long-term industry tailwinds and robust analyst ratings, supports the potential for continued appreciation in the stock's value over time.