Nvidia Stock Price Rises 1.47 % – Time To Buy Nvidia Stock?
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Nvidia is known for its discrete graphics card offering and its position in the gaming sector. Leading the likes of Advanced Micro Devices (AMD), Intel, Qualcomm, and others in the chip-making business, Nvidia ended Q4 2020 with 82% of the discrete graphics card market in its pocket.
The California-based tech company has continued to fly in 2021, seizing 81% in Q1 2021 and leaving a small share of the graphics card market to others to fight over.
This has primarily been due to the launch of RTX 30 series cards which has enjoyed wide patronage by gamers.
Graphics processing unit (GPU) shipments have shot up 20.5% year-over-year, according to Jon Peddie research. The highly lucrative market has generated $12.5 billion in revenue in Q1 alone, an increase of 370% over last year’s margin, thanks to the global chip shortage and increased average selling prices (ASPs) of gaming cards.
Nvidia has been a major beneficiary in the current financial climate, posting returns above $2.76 billion from its gaming revenue in Q1 2021.
Even though it has enjoyed a stellar Q1, we have to know if this is the right time to own NVDA stock. In this Nvidia price analysis, we will look at the company’s long-term growth as well as conduct technical and fundamental research to see if the Nvidia price is a good buy or not.
Nvidia Stock – What Are Analysts Saying?
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Nvidia price rallied soon after the gamer-centric company announced a 4-for-1 stock split on May 21, allowing investors to make short-term gains.
This was coming at the back of a stellar year when Nvidia price rose 184% between March and November, buoyed by the lockdowns enforced to contain the coronavirus. However, it lost 20% falling to $463.73 per share in early March.
Nvidia price has been struggling to break out of the $560 resistance zone, only making a headway following the 4-for-1 stock split.
This saw NVDA stock surge to $748.44 per share on Nasdaq.
Even though it has since shed off 1.5% of its value, analysts forecast a strong run for Nvidia price. According to the investment bank Robert W. Baird & Co., Nvidia price would surpass the $800 mark. This is because Nvidia is a market leader in the semiconductor and GPU business. The bank believes the company’s graphics cards having more use cases in the booming artificial intelligence (AI) field.
Nvidia may realize a lot of its revenue from its gaming business, but a nascent market is gradually opening. At the height of the cryptocurrency boom in Feb. 2021, Nvidia graphics cards were for cryptocurrency mining leading to a shortage of the much-coveted gaming hardware.
To protect its gaming community, Nvidia introduced a crypto mining dedicated graphics card, CMP HX, for professional mining. While the crypto product is scheduled for release in Q2, Nvidia has reportedly booked more than $155 million in revenue, further boosting its revenue up 40% for the first quarter.
Even though the graphics are generally channeled for mining Ether (the world’s second most valuable crypto asset), Nvidia could unknowingly be carving up a revenue stream for itself in the future given the amount of attention the cryptocurrency market commands presently.
Nvidia Price – Technical & Fundamental Analysis
Nvidia’s revenue spiked in the last quarter, with some suggesting the utility of the cards in crypto mining.
However, the gaming industry is highly lucrative, with the adrenaline-centered entertainment niche boasting over $300 billion in value.
Laptop gaming is also picking up steam, and Nvidia’s pivotal position could see it remain at the top for a long time.
On the trading chart, Nvidia price is bearish trading below the 20-day moving average (MA) support of $751.39 at the close of trade yesterday. However, its relative strength index (RSI) rides slightly higher from the oversold mark at 32.81.
The moving average convergence and divergence (MACD) is also bearish trading at -4.00. Supporting this narrative, Nvidia price is trading below the 200-day MA at $746.57, pointing to a bear market.
Meanwhile, Nvidia price is trading close to the 200-day MA at $744.85 pointing to an uptrend in the near future.
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