NVIDIA stock: buy or sell
Updated on:
Jan 27th, 2021
2
NVIDIA stock brief
- NVIDIA stock went down -1.60% to close at $537.41 on the stock market today, after 3 consecutive sessions in negative.
- Barclays published a buy rating for NVIDIA on Tuesday, targeting $600.00
- NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, GPU and Tegra Processor.
Should I buy NVIDIA stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. 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?
How to know when is it time to sell NVIDIA stock?. Trading strategies give us the ability us to avoid impulsive decisions based on our personal feelings or the buzz that surrounds the market. We like very simple setups to guide us on when is the best moment to sell our shares. Be aware that these setups are not intended for selling short $NVDA stock
As a rule of thumb, you should not keep a trading operation that generates losses greater than those expected upon the buy. When to sell shares should always be ruled by the stop-loss (automatic or manual)
Is it time to sell NVIDIA stock?
Currently, NVIDIA stock doesn't match any of our preferred sell setups, so if you hold NVIDIA shares and your operation is in profit probably is not time to sell now
NVIDIA ratings
In the last month, 4 analyst ratings were published for NVIDIA. General sentiment is bullish, with 3 out of 4 publishing optimistic forecasts
| Brokerage firm | Rating |
|---|---|
| Jan 12th, 2021 | |
| Oppenheimer | |
| Jan 15th, 2021 | |
| 140166 | Buy |
| Truist | Neutral |
| Jan 26th, 2021 | |
| Barclays | Buy |
NVIDIA stock analysis
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
Since the price surpassed the upper band last Thursday, the price dropped by 4.03%
Relative strength index
When the stays for so long below 70 and above 30, without indication of overvaluation and undervaluation, the indicator is of little use, and we currently are in such a case.
NVIDIA stock price history
NVIDIA started trading on Jan 22nd, 1999 priced at $1.61 per share1. Since then, NVDA stock has risen by 33,279.50%, with an average of 1,512.70% per year. An investment of $1,000USD at that time would have a value of $333,795.03 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for NVIDIA stock
Nobody knows how much a stock will be priced tomorrow. However, many stock price predictions are published every day by banks, financial institutions and independent analysts.
The following table shows the price forecasts released by financial institutions for the last 30 days. Again, these estimates are not direct recommendations for individual investors and should not be followed blindly.
There are 4 price forecasts posted for NVIDIA that average $624.25. NVIDIA closed at $537.41 on Tuesday, that is a 13.91% than the target price.
| Brokerage firm | Price target |
|---|---|
| Jan 12th, 2021 | |
| Oppenheimer | $600.00 |
| Jan 15th, 2021 | |
| 140166 | $610.00 → $625.00 |
| Truist | $643.00 → $672.00 |
| Jan 26th, 2021 | |
| Barclays | $550.00 → $600.00 |
Earnings and financials
Earnings event was hosted by NVIDIA ($NVDA) last November after posting the financial report. NVIDIA reported earnings of $2.91 per share on sales of $4.7 billion. The market estimate was $2.57 per share on revenue of $4.4 billion.
Compared to the same quarter last year, EPS was $1.78, so reported EPS means a increase of 63.48%. Looking at revenues, figures exploded a 56.80% compared to $30.1B year over year.NVIDIA ($NVDA) is posting quarterly earnings report next Thursday. Market estimates of $2.80, compared to Q3 that was $2.91.
NVIDIA competitors
NVIDIA is part of the Technology sector and the Semiconductors industry, which contain industry peers.
The following are NVIDIA major competitors:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| NVIDIA ($NVDA) | $330.4B | Buy | 3 |
| Microsoft ($MSFT) | $1.6T | | 1 |
| Intel ($INTC) | $212.4B | Neutral | 9 |
| Qualcomm ($QCOM) | $177.7B | Buy | 3 |
| Texas Instruments ($TXN) | $159.0B | Buy | 2 |
| AMD ($AMD) | $109.3B | Buy | 5 |
| STMicroelectronics ($STM) | $36.6B | | 5 |
| Ambarella (AMBA) | $3.5B | Buy | 2 |
1 In the last 30 days.
NVIDIA performance
To better understand NVIDIA stock performance you must compare its gains with other related stocks in same sector or industry.. For NVIDIA, the benchmark is made against Microsoft, Intel, Qualcomm, Texas Instruments, AMD, STMicroelectronics and Ambarella.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| NVIDIA ($NVDA) | 3.10% | 0.10% | 29.60% |
| Microsoft ($MSFT) | 2.90% | 7.00% | 14.50% |
| Intel ($INTC) | 18.50% | 16.20% | 13.20% |
| Qualcomm ($QCOM) | 10.00% | 28.00% | 78.10% |
| Texas Instruments ($TXN) | 6.70% | 16.50% | 32.80% |
| AMD ($AMD) | 3.20% | 14.70% | 39.10% |
| STMicroelectronics ($STM) | 8.50% | 18.50% | 37.90% |
| Ambarella (AMBA) | 7.80% | 77.40% | 125.70% |
Please read:
The comments written in this article are personal and not recommendations for you to buy or sell shares. The author of this document does not know the particular scenarios of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are expressed for general educational reasons onlyNVIDIA summary
| Tuesday, January 26th, 2021 | |
|---|---|
| Open | $543.22 |
| Close | $537.41 |
| Day range | $535.5 - $545.79 |
| Previous close | $546.13 |
| Session gain | -1.60% |
| Average true range | $22.86 |
| 50d mov avg | $531.11 |
| 100d mov avg | $529.73 |
| 200d mov avg | $455.34 |
| Earnings date | February 11th, 2021 |