IBD Stock Analysis
- Stock forms double bottom with 476.09 buy point
- But shares hitting resistance at downward-sloping trendline
Industry Group Ranking
* Not real-time data. All data shown was captured at
11:54AM EST on
The Santa Clara, Calif.-based company plans to release its results for the quarter ended Oct. 29 after the market close on Nov. 21. Analysts polled by FactSet predict Nvidia will earn $3.33 a share on sales of $16.06 billion. In the year-earlier quarter, Nvidia earned 58 cents a share on sales of $5.93 billion.
Demand for graphics processors and data-center hardware for artificial intelligence applications has been fueling huge sales and earnings growth for Nvidia this year.
In a weekend note to clients, investment firm Evercore ISI called Nvidia “arguably the most important stock in the world right now.”
Nvidia is a key player among “AI enablers, adopters and adapters,” Evercore said. The firm rates Nvidia as outperform with a price target of 600. Evercore analysts noted that Nvidia stock “has made a stalwart defense of its months-long support line at $400.”
Nvidia Stock In Double-Bottom Base
In afternoon trades on the stock market today, Nvidia stock rose 0.7% to 453.29.
But there are several caution flags for Nvidia stock. First, it has hit resistance at a downward-sloping trendline in the base. Also, there has been a lack of trading volume on up days in the past two months. Meanwhile, there have been number of down days in higher volume.
Chipmaker Is On Three IBD Stock Lists
Last week, Nvidia stock fell over concerns that U.S. trade restrictions on China would seriously crimp its sales. Restrictions on advanced chip sales to China are part of the Biden administration’s efforts to keep artificial intelligence technology away from China’s military.
On Monday, BofA Securties analyst Vivek Arya reiterated his buy rating on Nvidia stock with a price target of 650.
Arya said he expects Nvidia to beat Wall Street’s targets with its fiscal third-quarter results and guidance.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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