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Does NVIDIA Stock Have Upside Potential?

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On August 22, NVIDIA (NVDA) stock closed at $171.48, which was 0.15% higher than its previous closing price, 41.4% lower than its 52-week high of $292.76, and 37.8% higher than its 52-week low of $124.46. The company’s market cap is $104.4 billion.

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NVIDIA’s stock performance

Based on NVIDIA’s closing price on Thursday, the company has reported returns of 15.3% in the last five trading days, 0.1% in the trailing one-month period, and -34.8% in the trailing 12-month period. The company has reported returns of 28.5% since the beginning of 2019.

During the trading session on Thursday, NVIDIA stock closed near its upper Bollinger Band level of $180.21. The value suggests that NVIDIA stock is overbought. Investors could take the value as a “sell” signal.

Ratings and target price

On August 16, Morgan Stanley increased its target price on NVIDIA stock from $170 to $180. Morgan Stanley reiterated its “equal weight” rating on the stock.

Among the 40 analysts covering NVIDIA stock, 26 recommended a “buy,” 12 recommended a “hold,” and two recommended a “sell.” On Thursday, NVIDIA stock had a consensus 12-month target price of $184.25. The target price implies a 12-month investment return potential of 7.4%. The return is based on the stock’s closing price on Thursday. The stock’s median target price is $190.00.

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NVIDIA stock’s MACD

NVIDIA stock’s current 14-day MACD (moving average convergence divergence) is 11.86. The positive MACD score indicates an upward trading trend. A stock’s MACD marks the difference between its long-term and short-term moving averages.

NVIDIA’s dividend yield

NVIDIA’s next quarterly cash dividend of $0.16 per share will be paid on September 20 to stockholders on record as of August 29. The quarterly dividend was equivalent to an annualized dividend of $0.64 per share and a dividend yield of 0.4%.

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Financial performance

In the second quarter, NVIDIA reported revenues of $2.58 billion—a fall of 17.4% YoY (year-over-year). The revenues were $34 million above the consensus estimate. The company reported an adjusted EPS of $1.24—a fall of 36.1% and $0.09 better than the consensus estimate of $1.15. Read NVIDIA Earnings Revive Confidence: Is the Worst Over? to learn more about its performance in the second quarter of fiscal 2020.

Analysts expect NVIDIA’s net revenues to see YoY changes of -8.6% to $2.91 billion in the third quarter and 38.9% to $3.06 billion in the fourth quarter. Analysts also expect the company’s adjusted EPS to see YoY changes of -14.7% to $1.57 in the third quarter and 112.5% to $1.70 in the fourth quarter.

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