Nvidia (NVDA) is moving, as hoped.
In fact, as we noted on Dec. 29, “After dropping from about $188 to $140.36, the stock has become brutally oversold. Even RSI, MACD, and Williams’ %R are all deep in oversold territory. The last time NVDA became this technically oversold, it would bounce from about $114 to about $188. With NVDA, it may make sense to buy the fear, as others run scared.”
Since then, NVDA ran from $140.36 to $147.49, where we still like the tech stock. From its current price, we’d like to see it closer to $175, as it starts to pivot from support.
Needham analysts like the stock here, too. The firm rates NVDA a buy with a price target of $230, and note it’s one of the top picks for 2023. As quoted by Barron’s, “We think estimates are much closer to the bottom,” he continued, adding that he believes the stock should return to its pre-Covid trading levels as both gaming and data center growth increase later next year. New products, including those based on its H100 chip, will also aid revenue growth. Long-term, we believe the company is on the forefront of the transition to AI workloads.”