Homepage / Technology / Here’s where the battle lines are drawn on Nvidia
States are so eager to win Amazon's HQ2 they're offering the company as much as $7 billion A new bill would require Facebook and Google to publicly archive ads purchased around elections A scientific breakthrough offers hope for an AIDS vaccine One of the hottest smart home start-ups in Silicon Valley was just acquired A new Tencent game lets users virtually clap for a leader of the Chinese communist party Verizon meets earnings expectations and beats Wall Street's forecast for revenue Elon Musk says his second tunnel digging machine for The Boring Company is 'almost ready' Private jets are getting cheaper Cryptocurrencies like bitcoin are not 'mature' enough to regulate, ECB chief Mario Draghi says Companies that burn up $1bn a year are sexy, dangerous, and statistically doomed Viral Chinese video game measures which players can clap fastest for President Xi Jinping On NAFTA, America, Canada and Mexico are miles apart Spain to suspend Catalonia's autonomy after regional leader fails to drop independence bid Bitcoin is not the new gold, Goldman Sachs says New Zealand Labour to form next government with support of small nationalist party Here are the best cities to claim your pension — but all fall short of a relaxing retirement Unilever blames poor weather for slowing growth Want to learn about fintech? There's a course for that Backroom battle imperils $230 million cryptocurrency venture LSE CEO Rolet to step down by end of 2018 Roche third-quarter sales beat forecasts with boost from new multiple sclerosis medicine London is the European hotspot for venture capitalists when it comes to fintech SAP third-quarter growth slows with dip in cloud subscriptions Europe set for mixed open as investors look to earnings, Catalonia deadline China's central bank is warning about a sudden collapse in asset prices China's central bank governor says he's likely to retire soon This ex-Googler is bringing self-driving excavators to construction sites India's high-flying start-ups are getting a dose of harsh reality Here comes Chinese GDP data at a pivotal time for the country MongoDB will raise $192 million in IPO, making it worth $1.2 billion Asia markets await China data after Dow closes above 23,000 for the first time Blue Apron layoffs hit office hardest, warehouse workers mostly spared, say sources Lawmakers urge US to craft targeted sanctions on Myanmar military Cramer Remix: Johnson & Johnson is out of battleground territory Cramer: Facebook's latest acquisition is a 'terrific insurance bet' against Snap Firm says it was wrong about Snap and slashes key estimate in half — but still no 'sell' rating IBM will get a strong tailwind from the weak dollar, CFO Martin Schroeter says Cramer sees great buying opportunities in 'Washington's shenanigans' Bids for Amazon's second headquarters are due Thursday – here are all the cities in the running Blue Apron cuts 6 percent of its workforce Amazon is spreading itself thin and getting into the ‘danger zone,’ analyst says Adobe shares jump more than 5 percent on 2018 profit forecast Snap's newest product is a 'dancing hot dog' costume Wall Street veterans are trickling into digital asset management State pension funds continue to fall behind. Here's how much you owe Senators are pushing to curb election meddling on social media Here are 4 top chip stock ideas for the next year: Barclays Russians used Facebook Messenger to interfere with election, top executive says Samsung is playing catch-up with Apple's Siri and the Google Assistant The federal lawmakers who regulate Amazon are begging the company to move to their home states Warren Buffett just made nearly $800 million in IBM, a stock he doesn’t even like that much The 2017 chart of the stock market looks 'eerily similar' to the one that crashed 30 years ago Google's AI subsidiary made a game-playing program that's entirely self-taught Xi sees US retreating on world stage and seeks to fill void as 'most powerful' Chinese leader in 45 years Tech companies are suddenly spending much more on lobbying as NAFTA negotiations loom Shares of IBM just did something they haven’t done in 15 years 'It's very hard not to give tax cuts to the wealthy,' Steven Mnuchin now says Bond market flashing warning sign even as stocks rally to new highs Mohawk Tribe sues Microsoft, Amazon for patent infringement Bitcoin plunges nearly 9% on fears of greater oversight from US regulators US 10-year yield flashes possible warning: Dallas Fed's Kaplan Chinese fintech company Qudian spikes more than 40 percent in IPO 'The housing market can't take the shock of a natural event,' real estate economist warns The Apple Watch is finally taking off, says analyst By selling now, investors risk missing an additional 'melt-up' in the market Amazon's next big bet is letting you communicate without a smartphone, says Alexa's chief scientist Cramer: IBM is not a Warren Buffett story anymore but about 'reignition of earnings' IBM sees biggest jump in 8 years after earnings beat Rising seas threaten nearly $1 trillion worth of US homes, says Zillow Germany's Hochtief confirms $20 billion bid for Spain's Abertis Amazon's $13.7 billion bet on online grocery ordering hasn't convinced shoppers to stay home The same federal lawmakers who regulate Amazon are wooing the company in the race for HQ2 OPEC reportedly favors 9-month extension to output cut deal in bid to boost oil prices Stephen Curry’s new shoe will spark an Under Armour turnaround: Analyst Apple and GE are writing software to help detect when jet engines could fail Merck shares jump after Citi upgrade on stronger cancer drug sales US investors should get some international exposure Elon Musk is 'fixated on Mars' but Bezos and I want space to better Earth, says Richard Branson Hurricanes Harvey and Irma drive housing starts down to a one-year low When the revolution eats itself Stocks making the biggest moves premarket: CVX, MGM, ANTM, IBM, CREE, AMZN & more Hillary Clinton says US threats of war with North Korea are 'dangerous' and 'short-sighted' Twitter’s new user rules crack down on nudity and 'unwanted sexual advances' The only thing scary about the Dow is that nothing seems to scare it Economist lays out a ‘concerning’ trend for Apple stock 1 billion users could be using 5G by 2023 with China set to dominate, study says The big question for US cities: Is Amazon’s HQ2 worth the price? Google and Goldman Sachs are two of the most active investors in blockchain firms Iraq calls on BP to 'quickly' develop disputed oilfields after seizing areas of Kirkuk Amazon, eBay accused of ‘profiting’ from tax fraud in UK JPMorgan buys fintech start-up WePay WhatsApp is blocked in China and VPNs are being hit as the Communist Party Congress begins Xi Jinping makes big promises for China's economic future Akzo Nobel issues profit warning after third-quarter earnings miss Boeing says Bombardier jets could still face hefty duties even if they are assembled in Alabama European shares expected to open on a positive note as earnings season picks up the pace InterContinental is bringing two new hotel brands to Asia India's troubled banks desperately need more money — but government help just isn't coming An upcoming fintech IPO is set to be 2017's largest Chinese listing in the US Amazon has brought benefits—and disruption—to Seattle

Technology

Here’s where the battle lines are drawn on Nvidia

It just keeps getting better for Nvidia shareholders.

Soaring to a fresh record on Tuesday, the white-hot semiconductor stock is now up 181 percent during the past year, and an incredible 1,021 percent in the past three.

What makes the run even more impressive is that the stock has essentially only gone in one direction. The stock hasn’t fallen by more than 8 percent in a calendar month since January 2016.

At this point, views on the stock might to come down to how one cares to view stocks in general. Those who pore over income statements, valuation comparisons and analyst estimates in search of value might tend to turn a sharp eye to the stock — which is now trading at nearly 50 times the earnings expected over the next 12 months.

For those who put their faith in price alone, the fact that the shares have risen in the past might serve as evidence enough that they will rise in the future.

“With a stock that’s up 182 percent over the past year, you don’t need a trend-following technician to tell you to buy Nvidia,” Rich Ross, head of technical analysis at Evercore ISI, quipped Tuesday on CNBC’s “Power Lunch.” “What you need me for is to tell you not to sell it — and by all means, don’t short the stock.”

Breaking down a one-year chart of the stock, Ross noted that “if you look back to November of last year, that third-quarter earnings release, it set the stage for a one-month surge, from that release in November to that peak in December, of 64 percent.”

“I’m not telling you we’re going up 64 percent before year-end, but I’m not not telling you that can happen,” Ross added coyly.

Erin Gibbs, portfolio manager at S&P Global, sees the stock a bit differently.

“This is definitely a pop, and we’ve seen just a huge increase in Nvidia’s valuations compared to the semi industry,” Gibbs said Tuesday on “Power Lunch.”

“One thing that investors have to be wary of is that going forward, they’re going from about 35 percent growth down to about 7 in the next year. So that’s a big drop in the rate of growth, and at these prices, they’re just looking really expensive,” Gibbs said.

Indeed, she points out that the stock has even managed to run ahead of Wall Street analysts’ expectations. While the average research analyst rates the stock buy or overweight, the median price target, according to FactSet data, is actually $180 — 5 percent below the stock’s Tuesday closing price of $188.93.

“The train has already left the station for NVDA,” Gibbs said.

Of course, to Ross’ point, that doesn’t mean that those betting against the stock won’t continue to get run over.

Source: Tech CNBC
Here’s where the battle lines are drawn on Nvidia

Comments are closed.