NVIDIA shares gain the most in six months on Friday, prices of company’s GPUs skyrocket on exceptionally strong consumer demand

February 12, 2018 10:38 am

Popularity of NVIDIA’s graphic processors (GPUs) has grown to such an extent, that PC gamers as well as cryptocurrency miners feel comfortable to pay several times the retail list price in order to acquire one on-line.

NVIDIA shares closed higher for the third time in the past seven trading sessions on Friday. It has also been the sharpest daily surge since August 14th 2017. The stock went up 6.69% ($14.56) to $232.08, after touching an intraday high at $238.89, or a price level not seen since February 1st ($246.90).

In the week ended on February 11th the shares of the PC tech company lost 0.62% of their market value compared to a week ago, which marked a second consecutive period of decrease.

The stock has pared its loss to 5.58% so far during the current month, following a 27.03% surge in January. The latter has been the best monthly performance since May.

For the entire past year, the shares of NVIDIA Corp rose 81.28% following another 223.85% surge in 2016.

Priced at $349 last year, NVIDIA’s GeForce 1070 chip set, for instance, was selling at as much as $900 on Amazon.com on Friday, Reuters reported.

According to Colette Kress, NVIDIA’s Chief Financial Officer, gaming GPU inventories have fallen to historically low levels, because of strong demand for these products by digital currency miners.

“We do think that cryptocurrency has been a very significant factor in both revenue and pricing, creating a shortage environment that is boosting pricing”, Morgan Stanley analyst Joseph Moore wrote in a client note, cited by Reuters.

Meanwhile, the PC tech company is seen by some analysts as further boosting its competitive advantage, once it applies its Volta chip architecture to gaming chips. Under the code name of “Turing”, NVIDIA’s new GPU gaming chip is expected to be introduced in March.

The company’s revenue from gaming products reportedly surged 29% to $1.74 billion during the most recent quarter.

As of now, the Volta architecture has been applied to data-center GPUs only. Nvidia’s data center revenue rose more than two times to $606 million during the past quarter, as the Volta chip was adopted in IBM, Amazon, Alibaba, Alphabet, Microsoft as well as in other companies’ servers.

According to CNN Money, the 28 analysts, offering 12-month forecasts regarding NVIDIA Corporation’s stock price, have a median target of $240.00, with a high estimate of $281.00 and a low estimate of $87.00. The median estimate is a 3.41% surge compared to the closing price of $232.08 on February 9th.

The same media also reported that 15 out of 33 surveyed investment analysts had rated NVIDIA Corporation’s stock as “Hold”, while 13 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the NVIDIA stock are presented as follows:

R1 – $234.04
R2 – $236.00
R3 (Range Resistance – Sell) – $237.96
R4 (Long Breakout) – $243.83
R5 (Breakout Target 1) – $250.70
R6 (Breakout Target 2) – $254.88

S1 – $230.12
S2 – $228.16
S3 (Range Support – Buy) – $226.20
S4 (Short Breakout) – $220.33
S5 (Breakout Target 1) – $213.46
S6 (Breakout Target 2) – $209.28

By using the traditional method of calculation, the weekly levels of importance for NVIDIA Corporation (NVDA) are presented as follows:

Central Pivot Point – $224.99
R1 – $245.98
R2 – $259.88
R3 – $280.87
R4 – $301.86

S1 – $211.09
S2 – $190.10
S3 – $176.20
S4 – $162.30

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