NVIDIA Corporation (NASDAQ:NVDA)
NVIDIA Corporation (NVDA), a global visual computing company yesterday had its stock decline on a Citron’s Analysts negative comments. Citron Research reported that they believe NVDA stock will head back down to $90 in 2017. Citron believes that with new competition in AMD and Intel that NVIDIA will have a tough time maintaining its current market share.
Citron Analyst Comments
There’s a lot of risks to this business going forward,” Citron Research’s Andrew Left told CNBC’s “Fast Money” on Wednesday. “t’s really transferring their revenue from where it is right now — gaming — to data centers. It’s capturing more of the auto market. It’s maintaining margins. Obviously they have AMD coming into the gaming market. … If you own the stock, the easy money’s been made. CNBC
NVDA Technical Analysis
NVDA opened trading yesterday at $119.60 which was up from the previous day’s trading close of $117.32. NVDA closed trading yesterday at $109.25 and crashed down after market to $107.59, equivalent to a 10% decrease from the opening price. Taking a look at the daily chart we can see that the last time NVDA traded below these levels we have to go back to December 22nd when it traded at $107.11. Taking a closer look at the daily chart we can see that before the spike down NVDA had been in an overall upward trend dating back to May 12th when it traded at $35.57.
NVDA has a float of 514.39 million shares and traded 4.35 times the normal daily trading volume on Wednesday. For trading purposes, I would like to see NVDA open trading on Thursday below $110 and if it does I would be looking to take a short position at the bell. My stop loss would be $1.00 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
NVIDIA Corporation (NVIDIA), incorporated on February 24, 1998, is engaged in visual computing. The Company operates through segments, including GPU and Tegra Processor. The Company allows to open up new avenues of exploration, facilitate creativity and discovery, and power breakthroughs in areas like artificial intelligence, virtual reality and autonomous cars. It focuses on markets, such as gaming, professional visualization, datacenter and automotive. Its vertical integration enables to bring together hardware, system software, programmable algorithms, systems and services.
The Company’s gaming platforms utilize three dimensional (3D) software and algorithms, including its GameWorks investment in real-time graphics and simulation. Its products for the gaming market include GeForce GTX GPUs for PC gaming, the SHIELD family of tablet and portable devices for mobile gaming, GRID for cloud-based streaming on gaming devices, and development services for gaming platforms. The Company serves the professional visualization market by working closely with independent software vendors to optimize their offerings for NVIDIA graphics processing units (GPUs). Its visual computing solutions enhance productivity for critical parts of the workflow for industries, such as automotive, media and entertainment, oil and gas, and medical imaging.
The Company serves Datacenter market with GRID for virtualized graphics. To enable autonomous driving, the company delivers an end-to-end solution consisting of NVIDIA DIGITS and DRIVE PX for both training a deep neural network, as well as deploying the output of that network in a car. The Company competes with Advanced Micro Devices (NASDAQ:AMD), Intel Corporation (NASDAQ:INTC), Ambarella (NASDAQ:AMBA), Advanced Micro Devices Inc (NASDAQ:AMD), Apple (NASDAQ:AAPL), Avago Technologies Ltd., Intel Corporation (NASDAQ:INTC), Marvell Technology Group Ltd., Mediatek, Mobileye (NYSE:MBLY) N.V., Qualcomm (NASDAQ:QCOM) Incorporated, Renesas Electronics Corporation, Samsung (KS:005930), ST Microelectronics, Texas Instruments Incorporated (NASDAQ:TXN), ARM Holdings (LON:ARM) and Imagination Technologies Group (LON:IMG).