Nvidia Stock Near All-Time High Yet Indicators Are Mixed — All Eyes On 2024
Portfolio Pulse from Surbhi Jain
Nvidia Corp (NASDAQ:NVDA) has seen its stock more than triple in 2023, reaching $488.30 from $143.15. The company's market cap is now $1.2 trillion, with increased earnings and revenue. Nvidia's success is linked to high demand for its graphics cards used in AI training. Technical indicators are bullish, with the 50-day SMA crossing over the 100-day SMA. However, Nvidia's forward P/E of 39.70, while lower than peers AMD and Intel, is still high, and a bearish divergence in the OBV indicator suggests potential consolidation. Nvidia's 2024 guidance is optimistic, with expected growth in data center GPU shipments.
December 26, 2023 | 2:02 pm
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NEUTRAL IMPACT
Advanced Micro Devices trades at a higher forward P/E of 52.53 compared to Nvidia, which may influence investor perception of Nvidia's valuation.
AMD's mention in the context of Nvidia's valuation serves as a comparative benchmark. While it doesn't directly impact AMD's stock, it could affect investor sentiment regarding sector valuations and potentially influence AMD's stock indirectly.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Intel Corp's forward P/E of 50.33 is mentioned in comparison to Nvidia's, which may affect investor perspectives on Nvidia's stock valuation.
Intel's forward P/E ratio is used to compare Nvidia's valuation, which could influence how investors view Nvidia's stock price. While this doesn't have a direct impact on Intel's stock, it could play a role in shaping market sentiment around valuations in the semiconductor industry.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Nvidia's stock has seen significant growth in 2023, with bullish technical indicators and positive 2024 growth expectations. However, a high forward P/E and bearish OBV divergence suggest potential short-term consolidation.
While Nvidia's stock has shown impressive growth and the company's outlook for 2024 is positive, the mixed technical indicators, such as the bearish OBV divergence, could lead to short-term price volatility or consolidation. The high valuation compared to peers might also make the stock more sensitive to market fluctuations.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100