NVIDIA stock: buy or sell
Updated on:
Apr 22nd, 2021
2
NVIDIA stock brief
- NVIDIA stock moved up 1.25% to close at $614.42 on the stock market on Wednesday, breaking a streak of 3 sessions in red.
- Raymond James posted a hold rating for NVIDIA on Wednesday, with a target of $750.00
- 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?
"To sell or not to sell", if you are holding NVIDIA stock?. Just as when we have to buy shares, deciding when is appropiate to sell is not a random decision, and we must use our own trading strategy. When selling, as well as buying, our strategies are very simple to use and are only valid for selling stocks you already own, not for shorting NVIDIA stock
As a rule of thumb, you should not mantain an operation that shows a losses greater than those expected by the time of the buy. The moment to sell your stock always has to 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 profit can keep their positions
NVIDIA ratings
In the last 30 days, 15 brokerage ratings were published for NVIDIA. General sentiment is bullish, with 11 out of 15 posting optimistic outlooks
| Brokerage firm | Rating |
|---|---|
| Apr 13th, 2021 | |
| Barclays | Buy |
| Cowen | Buy |
| Credit Suisse Group | Buy |
| Deutsche Bank Aktiengesellschaft | Neutral |
| Mizuho | |
| Rosenblatt Securities | |
| Wells Fargo & Company | Buy |
| Apr 15th, 2021 | |
| Raymond James | Buy → Neutral |
| Apr 19th, 2021 | |
| Barclays | Buy |
| Cowen | Buy |
| Deutsche Bank Aktiengesellschaft | Neutral |
| Mizuho | |
| Rosenblatt Securities | |
| Wells Fargo & Company | Buy |
| Apr 21st, 2021 | |
| Raymond James | Buy → Neutral |
NVIDIA stock analysis
SMAs overview
Supports and resistances
The current resistances are:
The current supports are:
Bollinger bands
Since the price surpassed the upper band on April 15, the price corrected downwards by 5.27%
Relative strength index
The RSI dropped below the overbought level of 70 last Friday after just crossing to the overbough zone for 1 day (weak signal). The RSI reading on Wednesday was 61.02. Since that level was lost, NVIDIA stock tanked a 4.81%
NVIDIA stock price history
NVIDIA went public priced at an adjusted price1 of $1.61 on Jan 1999. Since then, NVDA stock has risen by 38,062.73%, with an average of 1,730.12% per year. An investment of $1,000USD at that time would be valued $381,627.33 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. Banks and financial organisations post their analysis forecasting how a stock will performance in the future.
The following table shows the price forecasts released by financial institutions in the last 30 days. If you are a small trader you must not invest based on these forecasts.
The average price target for NVIDIA stock calculated from the table below is $692.00. That is a 12.63% than the last price ($614.42).
| Brokerage firm | Price target |
|---|---|
| Apr 13th, 2021 | |
| Barclays | $600.00 → $650.00 |
| Cowen | $665.00 → $675.00 |
| Credit Suisse Group | $620.00 → $700.00 |
| Deutsche Bank Aktiengesellschaft | $560.00 → $575.00 |
| Mizuho | $650.00 → $675.00 |
| Rosenblatt Securities | $700.00 → $800.00 |
| Wells Fargo & Company | $625.00 → $715.00 |
| Apr 15th, 2021 | |
| Raymond James | $700.00 → $750.00 |
| Apr 19th, 2021 | |
| Barclays | $600.00 → $650.00 |
| Cowen | $650.00 → $675.00 |
| Deutsche Bank Aktiengesellschaft | $560.00 → $575.00 |
| Mizuho | $650.00 → $675.00 |
| Rosenblatt Securities | $700.00 → $800.00 |
| Wells Fargo & Company | $625.00 → $715.00 |
| Apr 21st, 2021 | |
| Raymond James | $700.00 → $750.00 |
Earnings and financials
Last February, NVIDIA Corporation ($NVDA) posted EPS for that slightly beat analysts' expectations. Quarterly EPS was $3.10 per share vs the estimates of $2.81. This Q4 report means an earnings surprise of 10.32%. Company's sales was $5.0 billion in contrast to $4.8 billion predicted by market consensus.
In comparing, the EPS for the same quarter last year was $1.89, so reported EPS means a improvement of 64.02%. Turnover exploded a 61.13% on an annualized basis in the , from $31.1B to $50.0B last quarter.NVIDIA ($NVDA) posts Q1 financial report mid next May. Analysts expect of $3.27, that is a 5.48% more than Q4.
NVIDIA competitors
NVIDIA is part of the Technology sector and the Semiconductors industry, which contain industry peers.
The following are NVIDIA main competitors:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| NVIDIA ($NVDA) | $318.1B | Buy | 11 |
| Microsoft ($MSFT) | $1.8T | | 5 |
| Intel ($INTC) | $259.1B | Neutral | 4 |
| Texas Instruments ($TXN) | $166.3B | Buy | 4 |
| Qualcomm ($QCOM) | $151.1B | Neutral | 0 |
| AMD ($AMD) | $92.9B | Buy | 2 |
| STMicroelectronics ($STM) | $33.2B | Neutral | 0 |
| Ambarella (AMBA) | $3.7B | Neutral | 0 |
1 In the last 30 days.
NVIDIA performance
To better understand NVIDIA stock performance you must compare its gains with other related stocks in same sector or industry.. For NVIDIA, the benchmark is made against Microsoft, Intel, Texas Instruments, Qualcomm, AMD, STMicroelectronics and Ambarella.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| NVIDIA ($NVDA) | 15.90% | 14.50% | 13.20% |
| Microsoft ($MSFT) | 12.20% | 18.90% | 17.70% |
| Intel ($INTC) | -3.50% | 8.60% | 18.20% |
| Texas Instruments ($TXN) | 3.80% | 9.00% | 26.10% |
| Qualcomm ($QCOM) | 1.60% | -17.50% | 6.40% |
| AMD ($AMD) | 1.80% | -8.70% | -0.70% |
| STMicroelectronics ($STM) | -0.30% | -6.30% | 9.50% |
| Ambarella (AMBA) | -3.10% | -4.40% | 75.50% |
Important:
The viewpoints contained in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this report does not have an understanding of the specific circumstances of the reader, his or her 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 Thoughts are published for general educational purposes onlyNVIDIA summary
| Wednesday, April 21st, 2021 | |
|---|---|
| Open | $604.75 |
| Close | $614.42 |
| Day range | $604.09 - $614.5 |
| Previous close | $606.85 |
| Session gain | 1.25% |
| Average true range | $29.85 |
| 50d mov avg | $553.94 |
| 100d mov avg | $542.89 |
| 200d mov avg | $519.49 |
| Earnings date | May 20th, 2021 |