NVIDIA Corporation (NASDAQ:NVDA) HEFFX Highlights

NVIDIA Corporation (NASDAQ:NVDA) HEFFX Highlights

NVIDIA Corporation (NASDAQ:NVDA) HEFFX Highlights

  • One of the hottest growth markets for NVIDIA (NASDAQ: NVDA) right now is data centers. The same graphics processing unit (GPU) technology used to power video games is now being used by cloud service providers to process the mountains of data consumers create, including videos, photos, and messages that ultimately get stored on a cloud server.
  • NVIDIA’s data center segment has shown no signs of slowing down, with segment growth of 175% year over year in the most recent quarter.
  • Archrival Advanced Micro Devices (NASDAQ: AMD) recently decided to get in on the action by announcing a collaboration with Baidu (NASDAQ: BIDU), a major cloud service provider in China and one of NVIDIA’s key customers.
  • Contrary to what you might think, this doesn’t hurt NVIDIA. In fact, NVIDIA is still very much a preferred chip provider to Baidu, as well as other Chinese tech giants, which should encourage NVIDIA investors, considering the huge opportunity China represents.

Nvidia Corporation focuses on personal computer (PC) graphics, graphics processing unit (GPU) and also on artificial intelligence (AI). The Company’s operates through two segments: GPU and Tegra Processor. The Company’s GPU product brands are aimed at specialized markets, including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users. The Company’s Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core central processing units (CPUs) to drive supercomputing for mobile gaming and entertainment devices, as well as autonomous robots, drones and cars. The Company’s processor has created platforms that address four markets: Gaming, Professional Visualization, Datacenter, and Automotive. The Company’s offerings include NVIDIA DGX AI supercomputer, the NVIDIA DRIVE AI car computing platform and the GeForce NOW cloud gaming service.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 180.76.

The projected upper bound is: 208.67.

The projected lower bound is: 186.41.

The projected closing price is: 197.54.

NVIDIA CORP closed down -0.900 at 196.900. Volume was 100% below average (consolidating) and Bollinger Bands were 58% wider than normal.

Open            High           Low             Close           Volume
198.490       199.590      196.540      196.900      23,067

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period       50-period         200-period
Close:                       193.88            175.71                138.05
Volatility:                19                     42                      49
Volume:                  13,547,849      15,700,435      17,825,278

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

NVIDIA CORP is currently 42.6% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into NVDA.O (mildly bullish). Our trend forecasting oscillators are currently bullish on NVDA.O and have had this outlook for the last 28 periods. Our momentum oscillator is currently indicating that NVDA.O is currently in an overbought condition.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 78.1249. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 73.42. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 21 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 89. This is not a topping or bottoming area. The last signal was a sell 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 10 period(s) ago.

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John Heffernan

John Heffernan is an Analyst at HEFFX. John is a BSc in Economics with Honors from the University of Buckingham, and is a contributor on equities at Live Trading News.

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