Sign InTechnical Analysis: NVIDIA Corp. (NVDA) Shows Bullish Trend with High Volume Trades - August 29, 2023
Summary
As of August 29, 2023, NVIDIA Corporation (NVDA) is experiencing a bullish trend with a high stock price and increased market attention, making it an attractive investment option for both traders and long-term investors.
Technical Analysis - NVIDIA Corporation (NVDA)
NVIDIA Corporation (NVDA) closed at \$487.84 on August 29, 2023, representing a change of \$19.49 (4.16%) from the previous close. The intraday trading ranged from a high of \$490.81 and a low of \$463.91. The stock is currently trending near it's 52-week high of \$502.66, substantially greater than the 52-week low of \$108.13. The high volume of trades during the day - 67.95 million against an average volume of 52.09 million - suggests increased market attention.
On the trend analysis front, NVDA's 50-day moving average is \$442.04, and the 200-day moving average stands at \$288.38, indicating a strong bullish trend in the mid to long term. However, the negative MACD of -6.67 over the last 3 months warns about the potential for a pullback.
The high RSI index of 70 suggests NVDA stock is in overbought territory, potentially indicating a downward price correction in the near term.
Fundamental Analysis - NVIDIA Corporation (NVDA)
NVIDIA Corporation, listed on NASDAQ, has a massive market capitalization of \$1.20 trillion. The company EPS is \$1.93, and with a P/E ratio of 252.77, the stock is priced significantly higher than earnings, indicating investor optimism about future growth.
Coming to earnings expected in November 2023, news of an ongoing partnership with Dell potentially giving a Q2 earnings boost is seen as a positive development. Despite its high valuation, some funds have faced consequences for holding too few NVDA shares, which could encourage more funds to add this to their portfolios in the future.
The company's DCF value stands at \$489.19. Analysts predict a high target price of \$800, a low target price of \$133, and a consensus target price of \$335.77. The median target price is \$250. Most analysts suggest a "Buy" rating for the NVDA stock.
Stock Prediction
Given the current bullish momentum and positive news, NVDA's stock price might continue its upward trajectory on August 30, 2023, though likely at a slower pace due to the overbought status.
For the upcoming week, the stock may experience a slight correction based on its high RSI but the overall trend is likely to remain bullish.
Final Evaluation
Taking into account the strong technical and fundamental highlights, coupled with positive news coverage, the NVDA stock presents a strong case for investors. While the stock's volatility provides opportunities for traders, the consistently upward trend is attractive to long-term investors.
Although NVIDIA Corporation (NVDA) is currently overpriced as per the overbought RSI and high P/E ratio, the strong bullish trend, high target price predictions, and increased market attention cement its potential for future performance.
Hence, the final rating on NVDA, based on long-term prospects and current market standing, is a "buy". However, investors must be prepared for potential short-term pullbacks due to the stock's overbought status and high market capitalization.
