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News and Views

The Official Blog of WhaleWisdom.com

NVIDIA shares have soared over the past three years surging by more than tenfold. An incredible run, putting the stock in a group of the elite performers. Analysts and investors continue to think shares of NVIDIA can rise even higher, adding to its already monstrous gains.

Shares of the chipmaker are off to a hot start in 2018, with the stock climbing by 23 percent, easily beating the S&P 500’s loss by nearly 24 percentage points. The stock was put into the WhaleWisdom WhaleIndex during February of 2017; shares have soared by about 120 percent since the addition.

Higher Prices

Analysts are looking for shares of NVIDIA to climb in the future, with an average price target on the stock at around $250. Meanwhile, 58 percent of the 36 analysts covering the stock rate shares as a “buy” or “outperform,” while 33 percent rate shares a “hold.” However, some analysts see the price rising much higher, to $305, based on data provided by Ycharts. Those targets have steadily climbed over the years, as the company consistently beats earnings and revenue targets.

Results Coming

The company is expected to report fiscal first-quarter 2019 earnings estimates on Thursday, May 10 after the close of trading. Analysts are looking for the company to report earnings climbed by nearly 94 percent versus the same period a year ago to $1.65 per share. Sales are expected to rise by nearly 49 percent to $2.879 billion.  The company has consistently beaten on both the top and bottom line over the past several quarters.

Adding Shares

Investors were adding shares of NVIDIA to their portfolios in a big way in the fourth quarter. With nearly 202 new institutions creating new positions in the stock, while 418 of them added to existing shares. Only 73 institutions closed their holdings, and 382 reduced their stake. Although data for the first-quarter will not be complete until May 15, given the stock’s strong performance thus far in 2018, it would not be surprising to see the trend continue in the first quarter.

However, what investors and analysts thought, or think today will not matter. It will be what they think after results on May 10, that determines the direction of the stock going forward. The pressure will be on NVIDIA, to beat not only big expectations for this quarter but also beat the big expectations for next quarter’s guidance.

Investors have a lot at stake when the company reports results.

This entry was posted on Tuesday, May 8th, 2018 at 9:15 am and is filed under WhaleIndex. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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