IBD Stock Analysis
- Shares have formed 13-week flat base with a buy point of 587.76
- Stock cleared a resistance level around 560 Monday
- Composite Rating is 97 of 99, but Relative Strength Rating is 71
Industry Group Ranking
* Not real-time data. All data shown was captured at
1:12PM EST on
Over the past 13 weeks, (NVDA) stock has formed a flat base with a buy point of 587.76, according to IBD MarketSmith charts.
Santa Clara, Calif.-based Nvidia plans to report financial results for its fiscal fourth quarter on Feb. 24. Analysts predict that Nvidia will earn $2.80 a share, up 48% year over year, on sales of $4.81 billion, up 55%, in the fiscal quarter ended Jan. 31.
Cryptocurrency Mining Could Be Near-Term Driver
(NVDA) stock is on the IBD 50 list of top-performing growth stocks as well as IBD’s Leaderboard list.
Evercore ISI analyst C.J. Muse on Saturday reiterated his outperform rating on (NVDA) stock with a price target of 675. Nvidia is one of his “top picks” among semiconductor stocks, he said in a note to clients.
Nvidia has posted accelerating sales growth for the past two quarters thanks to strong demand for graphics processors for gaming PCs and data centers.
It also could be getting a near-term lift from graphics processing units being used for cryptocurrency mining. Bitcoin is trading near record-high levels. However, GPUs are in short supply.
Elevated Bitcoin prices will “create a near-term demand driver that will soak up any excess supply of GPUs,” Bradley Gastwirth, chief technology strategist for Wedbush Securities, said in his note to clients Monday.
(NVDA) Stock Ranks Third In Its Group
Nvidia ranks third out of 31 stocks in IBD’s fabless semiconductor industry group, according to the IBD Stock Checkup tool. But that group ranks just No. 107 of 197 industry groups that IBD tracks. Choosing highly rated stocks from leading industry groups in a confirmed stock market uptrend generally increases your chances of making profits in growth stocks.
(NVDA) stock has an IBD Composite Rating of 97 out of 99. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
However, it has a so-so IBD Relative Strength Rating of 71 out of 99. The Relative Strength Rating shows how a stock’s price performance stacks up against all other stocks over the last 52 weeks.
Also, the relative strength line for (NVDA) stock is trending lower as it lags the S&P 500 index.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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