NVIDIA shares rebound on Monday, Needham revises up price target, maintains “Buy” rating on the stock

May 15, 2018 7:35 am

Needham & Company revised up its price target for NVIDIA Corporation (NVDA) to $325 from $300 previously, as it cited the company’s latest stronger-than-anticipated earnings that were driven by a 70% surge in data center revenue. The asset management firm also maintained a “Buy” rating on the stock.

NVIDIA shares closed higher for the seventh time in the past eight trading sessions on Monday. The stock went up 0.33% ($0.83) to $255.36, with the intraday high and the intraday low being at $258.49 and $254.40 respectively.

In the week ended on May 13th the shares of the PC tech company added 6.47% to their market value compared to a week ago, which marked a second consecutive period of gains. It has also been the best performance since the week ended on April 15th.

The stock has extended its advance to 13.54% so far during the current month, following a 2.89% slump in April. The latter has been a third straight month of losses.

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

According to Needham analyst Rajvindra Gill, pricing and demand for Nvidia’s graphics processing units have improved during the first quarter amid a tight supply environment.

Needham also revised up its full-year 2019 earnings forecast to $7.80 per share, while the firm’s earnings estimate for 2020 was raised to $8.65 per share.

Needham’s Gill also noted that Nvidia’s valuation still remained high in comparison with its semi group peers. However, the growth record of Nvidia’s revenue, earnings and data center total addressable market may justify such a valuation, he explained.

According to CNN Money, the 28 analysts, offering 12-month forecasts regarding NVIDIA Corporation’s stock price, have a median target of $267.50, with a high estimate of $305.00 and a low estimate of $100.00. The median estimate is a 4.75% surge compared to the closing price of $255.36 on May 14th.

The same media also reported that 15 out of 32 surveyed investment analysts had rated NVIDIA Corporation’s stock as “Buy”, while 13 – as “Hold”. 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 – $255.73
R2 – $256.11
R3 (Range Resistance – Sell) – $256.48
R4 (Long Breakout) – $257.61
R5 (Breakout Target 1) – $258.92
R6 (Breakout Target 2) – $259.47

S1 – $254.99
S2 – $254.61
S3 (Range Support – Buy) – $254.24
S4 (Short Breakout) – $253.11
S5 (Breakout Target 1) – $251.80
S6 (Breakout Target 2) – $251.25

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

Central Pivot Point – $252.64
R1 – $262.39
R2 – $270.25
R3 – $280.00
R4 – $289.75

S1 – $244.78
S2 – $235.03
S3 – $227.17
S4 – $219.31

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