NVIDIA stock: buy or sell
Updated on:
Jun 22nd, 2021
2
NVIDIA stock brief
- NVIDIA slided a -1.13% after making new all-time highs last Friday
- Raymond James posted a neutral rating for NVIDIA on Tuesday, with a target of $900.00
- Price is drawing a scaled uptrend since last March with higher tops and higher bottoms. This rally marked a 59.41% gain
- NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, Graphics and Compute & Networking.
Should I buy NVIDIA stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $NVDA stock a buy?
Currently, NVIDIA stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $NVDA will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell NVIDIA stock?
Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies give us the ability us to avoid impulsive decisions based on our personal emotions or the noise that surrounds the market. When selling, as well as buying, detailed setups are very simple to use and are only applicable for selling shares in your porfolio, not for shorting $NVDA stock
A guiding principle is that you must never keep an operation that results in higher than expected losses upon purchase. The moment to sell shares must always be dictated by the stop-loss (automatic or manual)
Is it time to sell NVIDIA stock?
In the current situation of NVIDIA there is not any eligible sell setup, so NVIDIA stock holders with operations in green can keep their positions
NVIDIA ratings
In the last month, 16 analyst ratings were published for NVIDIA. General sentiment is bullish, with 14 out of 16 publishing positive forecasts
| Brokerage firm | Rating |
|---|---|
| May 27th, 2021 | |
| Bank of America | |
| BMO Capital Markets | Buy |
| Cowen | Buy |
| Craig Hallum | Neutral → |
| Deutsche Bank Aktiengesellschaft | Neutral |
| Evercore ISI | Buy → Buy |
| Jefferies Financial Group | |
| KeyCorp | Buy → Buy |
| Mizuho | |
| Piper Sandler | Buy |
| Truist Securities | |
| UBS Group | |
| Wedbush | Buy → Buy |
| Jun 17th, 2021 | |
| Jefferies Financial Group | |
| Jun 18th, 2021 | |
| Bank of America | |
| Jun 22nd, 2021 | |
| Raymond James | Buy → Neutral |
NVIDIA stock analysis
NVIDIA stock started an uptrend last March, and grew an amazing 59.41%. The price line shows higher peaks and troughs, and along the way gave very few entry points for those who wanted to trade in. Latest pullback was in mid-May, when price bounced at $538.24. Like in all uptrends, price needs to take breath and now price is moving in a range between $775.00 and $538.24
$NVDA at new All-time Highs
NVIDIA did it again, and reached new all-time highs (ATH) last Friday at $775.00. Stock cracked new all-time highs 3 times in the last 10 sessions
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
Relative strength index
Climbed above the 70 level Monday, with a reading of 73.1. Breaking through above the overbought zone is not a sell signal, as stocks can be above the level of 70 for many, many weeks and may continue to rally
NVIDIA stock price history
NVIDIA went public on Jan 22nd, 1999 at $1.61 per share1. Since then, NVDA stock has risen by 45,681.99%, with an average of 2,076.45% per year. An investment of $1,000USD on the IPO would worth $457,819.88 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for NVIDIA stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are issued every day by banks, financial institutions and independent analysts.
The following table shows the price forecasts posted by financial institutions in the last 30 days. If you are a small trader you don't have to buy or sell based on these forecasts.
Averaging all price targets exposed below, the forecasted price for NVIDIA stock is $754.81. That is a 2.40% than the current price ($737.09).
| Brokerage firm | Price target |
|---|---|
| May 27th, 2021 | |
| Bank of America | $700.00 → $750.00 |
| BMO Capital Markets | $680.00 → $750.00 |
| Cowen | $675.00 → $705.00 |
| Craig Hallum | $550.00 → $750.00 |
| Deutsche Bank Aktiengesellschaft | $575.00 → $600.00 |
| Evercore ISI | $675.00 → $750.00 |
| Jefferies Financial Group | $680.00 → $740.00 |
| KeyCorp | $700.00 → $775.00 |
| Mizuho | $675.00 → $710.00 |
| Piper Sandler | $625.00 → $690.00 |
| Truist Securities | $700.00 → $768.00 |
| UBS Group | $670.00 → $735.00 |
| Wedbush | $640.00 → $700.00 |
| Jun 17th, 2021 | |
| Jefferies Financial Group | $740.00 → $854.00 |
| Jun 18th, 2021 | |
| Bank of America | $800.00 → $900.00 |
| Jun 22nd, 2021 | |
| Raymond James | $750.00 → $900.00 |
Earnings and financials
In late May, NVIDIA Corporation ($NVDA) reported adjusted EPS for that beat Market expectations. Quarterly EPS was $3.66 per share vs the estimates of $3.28. This quarterly report means an earnings surprise of 11.59%. Company's sales was $5.7 billion in contrast to $5.4 billion forecasted by market consensus.
Compared to the same quarter one year ago, EPS was $1.80, so reported EPS means a improvement of 103.33%. Looking at revenues, figures exploded a 83.80% compared to $30.8B same quarter 12 months ago.NVIDIA ($NVDA) is presenting quarterly financial report next August. Analysts forecast of $4.11, that is a 12.30% higher than Q1.
NVIDIA performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| NVIDIA ($NVDA) | 21.50% | 39.10% | 37.80% |
Disclaimer:
The thoughts written in this post are personal and not recommendations for you to buy or sell stocks. The author of this article does not have an understanding of the particular positions of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are expressed for learning motives onlyNVIDIA summary
| Monday, June 21st, 2021 | |
|---|---|
| Open | $737.41 |
| Close | $737.09 |
| Day range | $712.91 - $741.46 |
| Previous close | $745.55 |
| Session gain | -1.13% |
| Average true range | $27.72 |
| 50d mov avg | $628.98 |
| 100d mov avg | $585.13 |
| 200d mov avg | $556.89 |
| Earnings date | August 18th, 2021 |