Shares of Nvidia (NASDAQ: NVDA) climbed by 2% on Wednesday, which may have been boosted by news of a recent agreement with the U.S. Department of Energy.
The deal is a positive indication for Nvidia’s data center business since its accelerated processing and AI capabilities are already experiencing increased usage.
In the second-quarter earnings, Nvidia’s data center revenues grew by 35% year-over-year to $2.37 billion, according to the company. Indeed, the firm achieved outstanding second-quarter earnings results, with sales exceeding its management’s forecast.
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When comparing the annual performance of all equities, we see that NVDA outperforms 89% of the stocks. It is worth noting that NVDA’s upwards performance over the last year has been evenly distributed across this time frame as a consistent performer; both short and long-term trends look positive for NVDA.
NVDA performance
In the stock market, a new 52-week high is presently being set by NVDA; this performance is in line with the market as the S&P 500 Index is also trading around new highs.
Additionally, the volume has increased significantly over the previous several days, which is something you like to see during a strong uptrend.
Currently, the company’s shares are trading above its 20, 50, and 200-day simple moving averages, which stock investors commonly use to identify uptrends. In light of recent performance and a price above the 20-day SMA, it looks that the firm’s short-term bullish momentum may carry it beyond the $125 resistance mark shortly.
Although, Nvidia shares have fluctuated widely during the previous month, trading in the range of $187,62 – $224,70.
As of right now, it is trading towards the upper end of its trading range. At present, it may not offer a high-quality setup; recently, prices have been rising, so traders may look to wait for a period of consolidation before making an entry point.
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Wall Street analysts predict
On the basis of Nvidia’s performance over the previous three months, 29 Wall Street trade experts produced 12-month price projections for the firm.
With a high estimate of $300 and a low estimate of $176.25, the stock’s average price target is $226.19. The average price prediction predicts a 1.83 percent increase over Nvidia’s current price of $222.13.
Notably, twenty-seven TipRanks analysts advocate buying Nvidia, while just one recommends holding the stock based on its performance over the previous three months, and only one suggests selling.
As a result, most analysts believe Nvidia is a strong buy, with an average price target increase of 1.83% from its current price of $222.13 but with a potential $300 highest price target.
Nvidia plans for the future
Looking ahead, Nvidia bought DeepMap, an Israeli firm that specializes in high-definition mapping solutions for mobile devices back in June. The technology firm is set to close the deal in Q3 2021, as it seeks to strengthen its autonomous car technology division.
Moreover, Jensen Huang, CEO of Nvidia, along with his team have developed a new product called CMP designed for professional crypto mining. Huang is well-known for his support of Ethereum and its value, seeing more room for growth working with the cryptocurrency space in the future.
A solid technical and analyst projection has led us to put the company in our best 5G stocks list, which is based on the opinions of trading professionals.
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