Jump Report
| Avg Daily Volume: 12,942,127 Market Cap: 111.36B Sector: Technology Short Interest: 2.4 |
EARNINGS EXPECTATIONS:
CONSENSUS EPS: .79/share REV: 2,200/M
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LAST QTR: EPS: .80/share ESTIMATED: .75/share (BEAT)
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NEXT QTR: EPS: 1.11/share REV: 2,540/M
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FY19: EPS: 5.30/share REV: 11,120/M
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*These are the base metrics we will be watching against the actual release numbers
BEAT/MISS HISTORY: 55% OF THE TIME THEY BEAT ESTIMATES
PRIOR ‘JUMP ZONE’ MOVES (3 QTRS %) 6.04, -20.14, -5.32
POTENTIAL JUMP MOVE: 9-11%
Links To Latest News and Headlines
Tesla, Nvidia and Adobe are among actionable stocks while Bitcoin hit a record high ahead of the Coinbase IPO. JPMorgan earnings are on tap.
The backlash towards Taiwan’s chip industry from the US-China tech war is becoming increasingly apparent, as this week’s Big Story shows. Elsewhere, south-east Asia’s tech scene has an outsized presence in this week’s newsletter. The US blacklisting of a Chinese chip company has highlighted Taiwan’s vulnerability to the trans-Pacific tech war.
Nvidia Corp.’s stock traded at record highs Tuesday as analysts hiked price targets and chimed in on the chip maker’s plans to branch out even further into supplying data centers with infrastructure.
Not content anymore with dominating the GPU market, Nvidia (NVDA) has now set its sights on taking share in the CPU segment. The chip giant hosted its annual GTC developers conference on Monday, and the market liked the company’s latest developments. Shares added ~9% over the past two trading sessions and now sit a whisker from all-time high. While Rosneblatt’s Hans Mosesmann counts CEO Jensen Huang’s keynote as “impressive in a multitude of AI, HPC, Cloud, Edge, 5G, Industrial, and Automotive areas,” the 5-star analyst thinks Wall Street might still be reeling from Nvidia’s progress and its intention to move into Intel and AMD territory. “It may take time for the Street to fully grasp what is going on, but make no mistake that Nvidia is again disrupting the AI/ acceleration markets in a way to keep pace with AI model complexity doubling every 2.5 months,” Mosesmann said. “The takeaway is that Nvidia is serious about CPUs and will not be constrained by x86 owned by Intel and AMD. The level of platform innovation is mind boggling and something that silicon competitors will be tasked to match for many, many years to come.” Until now, Nvidia had stayed out of the CPU market, one in which Intel has been the heavily dominant force (with AMD also taking its share). Mosesmann says the “CPU hole in Nvidia’s portfolio has been a consistent weak spot or vulnerability to Nvidia’s roadmap longer term.” That has now been rectified. Nvidia will base its new Project Grace CPU on ARM’s technology and the data crunching unit will boast much higher system bandwidth compared to the x86. Recall, pending regulatory approval, Nivdia is all set to acquire ARM for $40 billion. The CPU announcement was not the only news greeted enthusiastically by investors on Monday. Revenue for FQ1 appears to be coming in higher than expected; Nvidia had guided for revenue between $5.19 billion and $5.41 billion, but announced it was “tracking above” the $5.30 billion mid-point. Additionally, due to the surging crypto market, Nvidia is raking in additional revenue. Sales from crypto mining chips should hit $150 million, compared to the previous forecast for sales of $50 million. Overall, Mosesmann rates NVDA shares a Buy along with a $700 price target. This figure implies ~28% upside potential from current levels. (To watch Mosesmann’s track record, click here) Looking at the consensus breakdown, most on the Street agree. NVDA stock has a Strong Buy consensus rating based on 23 Buys vs. 4 Holds. The forecast is for 6% upside, considering the average price target clocks in at $664.60. (See NVDA stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Graphics-chip maker Nvidia released a fire hose of news on Monday, detailing advancements in artificial intelligence, computer graphics, robotics and data centers. Nvidia stock rose.
Analysis and trade direction are uploaded generally between noon and 1pm EST for most events. ALWAYS check back near market close for updates as the analysis can change by end of session.
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ANALYSIS:
Stockjumpers trajectory analysis reveals a positive market reaction to the target’s release news. We see a pop in price post release based on a beat and higher than expected guidance. This stock has soared over the years but the last few quarters the price has dropped and was certainly overbought. We think this quarter will look different – though perhaps not a huge move.
We are LONG on this event
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TRADE PLAN:
ENTRY: BUY – end of day
STOP LOSS: 5%
TAKE PROFIT: 8%
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UPDATE: (2:40PM) We remain biased long on this event.
POST RELEASE ACTION:
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NOTE: There is a significant amount of data behind the scenes in getting to the analysis in the tab above. Too much information for traders only confuses things – so this is striped down to only what it needed to make the best possible decision(s) on trading the trajectory.