Ahead of a volatile market in the wake of the Fed rate hike, the stock market stood significantly flat in the recent session due to fluctuations on major indices between positive and negative territory.
However, some companies have managed to stay on the green such as Advanced Micro Devices, Snap Inc. and NVIDIA, which posted sharp gains amid session.
Shares of NVIDIA rose over 3% after Goldman Sachs analyst Toshiya Hari reaffirmed the chip maker’s rating on the company’s “Conviction Buy” list with a price target of $130.
It seemed that Hari’s reiteration does not imply for a solid positive view on NVIDIA, rather he has expressed his admiration on the importance of the chip maker’s learning models and customer support after his recent participation in NVIDIA’s Deep Learning Center event in London.
Subsequently, he’s certain of the company’s proposed strategic investment plans in automotive, data center, and enterprise markets that will boost progressive results as to its successful core gaming segment.
Given that shares have tripled over the past year, Hari still believes that NVIDIA stocks have plenty of opportunities to compete well.
NVIDIA Partners with Mercedes-Benz
The undisputed leader has been recently focused on improving its self-driving cars and aims at turning the segment into a multi-billion dollar business.
Meanwhile, the analysts have anticipated a 134% NVIDIA growth (2015-2020) for self-driving cars with the company’s latest earnings call that involves significant segments after revenue grew up by 38% on a year-over-year basis with a record of $128 million.
Further, NVIDIA also announced their partnership with Mercedes-Benz and work together on a car that will be available by the year ending, followed by Tesla’s new autopilot system that is powered by the NVIDIA DRIVE PX 2 platform on the electric car maker’s Model S and Model X.
Hearing this, the headlines have garnered a lot of clicks and ad revenue, but still the company declined to comment on what is the real score. However, the stock is pretty much giving a lift as it made real waves this week.
The chart below illustrates the NVIDIA Corp. stock movement after several analysts have considered to closely watch the chip maker’s sharp gains. The stock is currently trading at 109.40 in a light trading volume of 129, near support 104.85.
Hence, given a bullish tone on the company’s stock, the RSI suggests that the overbought level hasn’t been reached. It could signal that the stock could further rally unless it would test its nearest support level.
As NVIDIA continues to empower the market with its self-driving cars and its announced partnership with the leading automakers, Tier 1 suppliers, we remain positive on the chip maker as the transportation industry is vastly moving into autonomous vehicles.
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