Sign InPositive Predictions for NVIDIA Stock Amidst Strong AI Potential and NASDAQ Adjustments
Summary
NVIDIA Corporation (NVDA) experienced a slight decrease in its stock price on July 10, 2023, but its significant volatility and growth potential, along with positive sentiment from analysts, suggest a favorable price movement in the upcoming week. (Analysis date: July 10, 2023)
Fundamental Analysis
NVIDIA Corporation, a NASDAQ-listed company, under ticker NVDA, has a market capitalization of $1.04 trillion. The company closed at a price of $421.8 on July 10, 2023, marking a slight decrease of $3.23, or 0.76% compared to its previous close. Despite this slight decline, there is a remarkable difference of over $300 or nearly 75% between its year high and year low, registering a high of $439.9 and a low of $108.13. This indicates significant volatility and growth potential that NVIDIA has shown over the past year.
The company has robust liquidity with a reported daily volume of 34.16 million shares, slightly below the average volume of 47.20 million shares. The earnings per share (EPS) is currently $1.91, while it trades at a high P/E ratio of 220.84 which implies a strong investors' confidence in the future earnings of the firm.
There is a positive sentiment for NVIDIA with target high, median and consensus at $600, $240, and $270.14 respectively. However, the target low stands at $133, suggesting potential downside risk. Recent news showed the company's forecast caught Wall Street by surprise and led to a price target increase because of NVIDIA's massive AI potential. Goldman Sachs predicts further upside with the potential for another 20% rally.
Technical Analysis
NVIDIA's current price stands above its 50-day and 200-day moving averages, at $361.82 and $231.78 respectively, indicating a strong bullish trend in the medium and long-term perspective. The moving average convergence divergence (MACD) of 17.77 for the past three months signals that the stock is on an upward trajectory.
However, the stock's Relative Strength Index (RSI) is currently at 47, near the middle of the scale, which indicates a balanced position and suggests that the stock isn't currently in an overbought or oversold state.
Relevant News and Upcoming Events
NVIDIA has been characterized as the hardware victor in the initial stages of the artificial-intelligence revolution. The company's potentially significant role in the AI Chip Revolution could position it favorably for future market trends.
There's an indication that the NASDAQ 100 is set to adjust the weighting of its components on July 14, which could potentially influence the NVDA stock value considering it's one of the tech sector's leading companies.
Stock Prediction and Evaluation
Considering the positive trend and upcoming adjustments to the NASDAQ 100, NVIDIA's slight decrease from the last trading day might just be a brief setback, indicating potential upward movement for the next trading day and week.
Given the company's solid long-term growth potential due to its strong position in the AI market, as well as an upward trend suggested by its MACD, moving averages, and news reports, we are predicting favourable price movement for the upcoming week.
Strong sentiment from analysts combined with NVIDIA's high-growth industry positioning leads to classify the NVDA stock as a Buy. Nevertheless, the prediction is subject to various market conditions and investors should consider their own risk tolerance and investment goals.
