Its time to talk about one of the most popular chipmakers in the market. Here is the breakdown on $NVDA otherwise known as Nvidia.
Current Price: $447.98
52/Wk High: $460.19
52/Wk Low: $147.394
Read below for the breakdown.
Nvidia is a company based in the manufacturing of computer graphics, GPU’s, and AI. More specifically, Nvidia’s business is majority focussed on GPUs and Tegra Processors.
According to TREFIS $NVDA’s stock can be broken down into three main segments. Currently, 86.6% of the stock price is estimated to be based on Nvidia’s GPU segment.
Secondly, 9.1% is expected to be based on Tegra processors and 4.2% based on Cash.
$NVDA stock has long been a solid growth stock within the market, but since the March lows, Nvidia has gone on a massive run. From roughly $200/share in March to presently sitting at $447.98/share.
Although $NVDA stock is sitting near all-time highs, I believe the stock has more room to run. Before we get into the future of the stock though, let’s dig into the numbers.
$NVDA has consistently beat on earnings in the last six quarters and Q1 2021 was no different.
Nvidia delivered a solid beat for Q1. $NVDA reported an EPS of $1.80 versus the expected EPS consensus of $1.69. Secondly, revenue was reported at a solid $3.1 billion.
The company also has a limited amount of debt. Currently, debt is sitting at roughly $1.99 billion. On the other hand, $NVDA is sitting on a solid $16.354 billion cash position as of April 30.
Looking forward analysts expect a big 2021 Q2. Currently, the expected EPS is $1.97 for Q2 and the expected revenue is $3.7 billion.
While analysts are bullish on the earnings numbers, they are so far somewhat flat on price targets for the stock.
Currently, the average price target for $NVDA is $409.48/share representing a downside of 8.59%.
On the bright side, the high price target is $500.00/share representing a whopping 11.61% upside.
Finally, the low price target is $260.00/share. Given the large difference in price targets, it’s somewhat hard to determine where analysts are targeting the stock as a majority.
Moving onto the big money, institutions are rather bullish. Currently, 69.28% of the $NVDA is owned by institutions. Top holders include Baillie Gifford & Co, BlackRock Institutional Investors, and Edgewood Management.
Digging into the technicals, the six month RSI currently sits just under the overbought territory at 67.58. The MACD is also trending up but is showing signs of a potential downside move.
Overall, after $NVDA’s nearly six-point pullback last Friday I think the stock is buyable going into Q2 earnings on the 19th.
I expect the stock will run into earnings and in the case of positive earnings even further post-earnings.
My current price target for the stock is between $455.00/share to $465.00/share. On the other hand given its current price point and uncertainty in the market, the stock could easily go the other direction and a close stop will be used.
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Disclaimer: This is not directly financial advice, simply opinion based on independent research.
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