Nvidia Stock Pops on Another Bull Note

The analyst believes Nvidia can dominate the next wave of computing

by Emma Duncan

Published on Sep 14, 2018 at 9:39 AM

The Coca-Cola Co
The Coca-Cola Co
The Coca-Cola Co
The Coca-Cola Co
The Coca-Cola CoChi

Chip stock Nvidia Corporation (NASDAQ:NVDA) is up 1.5% at $275.50 in early trading, moving higher after Needham analyst Rajvindra Gill lifted his price target to $350 from $325, and raised his fiscal 2019 earnings forecast to $7.89 per share. Gill believes the company's artificial intelligence data center platform, TensorRT Hyperscaler, will continue to take market share, adding the company is "uniquely positioned to capitalize on this next wave of computing."

Overall, Nvidia stock has been climbing higher on the charts, most recently touching a fresh record high of $285.22 on Sept. 4. Despite a brief pullback and Citron's big bear note, NVDA has a year-over-year lead north of 60%.

Analyst sentiment has been mostly optimistic toward Nvidia stock, with 19 of the 26 covering firms sporting "buy" or better recommendations. Plus, the security's average 12-month price target of $290.70 stands at a sharp premium to current levels and in all-time-high territory.

Looking toward options, the semiconductor name sports a Schaeffer's put/call open interest ratio (SOIR) of 0.93, which ranks in the 31st percentile of its annual range. In other words, near-term options traders have not been more call-skewed in the past year toward NVDA.
 

Lastly, now seems to be an attractive time for near-term traders to target options. This is based on the security's Schaeffer's Volatility Index (SVI) of 28%, which sits just 5 percentage points from an annual bottom, indicating low volatility expectations are being priced into short-term contracts.

From Schaeffer's Pro Traders
Weekly Options Secrets Revealed

Direct from our Schaeffer's traders, your FREE guide to winning with weekly options!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Race for Pot Profits Is On
The race for marijuana profits is on... and one up-and-comer is taking the "Buffett" approach to profits.
Pinterest Stock Soars in Trading Debut
PINS stock began trading on the Big Board earlier today
Big-Cap Earnings, Healthcare Woes Headline Holiday-Shortened Week
Legislation fears have the sent healthcare sector reeling
The Race for Pot Profits Is On
The race for marijuana profits is on... and one up-and-comer is taking the "Buffett" approach to profits.