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Why NVIDIA Stock Rose 1.4% in the Premarket Session


Aug. 26 2019, Published 12:36 p.m. ET

Today at 8:48 AM ET, NVIDIA (NVDA) stock rose to $164.70 in the premarket session. It was up 1.4% from its August 23 closing price. The stock rose after US President Donald Trump eased his stance on the trade war with China. According to a Reuters report on August 26, “In a change of stance, Trump said on Monday that Beijing had contacted Washington overnight to say it wanted to return to the negotiating table.”

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On August 23, NVIDIA closed at $162.44, implying a rise of 9.2% since its announcement of its second-quarter earnings results on August 15. Based on the closing price on August 23, NVIDIA is trading at a discount of 44.5% to its 52-week high of $292.76 and at a premium of 30.5% to its 52-week low of $124.46.

NVIDIA stock has delivered a strong return this year. Year-to-date, NVIDIA has returned 21.7%. NVIDIA stock has risen 161.9% in the last three years and 735.2% in the past five years. The company’s market cap is $98.9 billion. To learn more about the rise of NVIDIA stock, read NVIDIA Stock: Is Now the Right Time to Buy?

Analysts’ recommendations for NVIDIA stock

Overall, analysts favor a “buy” rating on NVIDIA. Among the 40 analysts that cover NVIDIA, 65% give it “buy” ratings, 30% give it “hold” ratings, and 5% give it “sell” ratings. Currently, analysts have a 12-month target price of $184.25 on the stock. On August 23, the stock was trading at a discount of 13.4% to analysts’ 12-month target price. Its median target price is $190.00 as of the same date.

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NVIDIA’s technical levels

Based on its closing price on August 23, NVIDIA stock was trading 0.8% above its 20-day moving average of $161.21, 0.4% above its 50-day moving average of $161.87, and 1.4% below its 100-day moving average of $164.78. On the upside, the company’s immediate key resistance lies near $168.14, and $159.19 could act as an immediate key support level on a daily basis.

NVIDIA’s 14-day RSI (relative strength index) score is 50, indicating that investors are neutral on the stock.

In the trading session on August 23, NVIDIA stock closed near its Bollinger Band midrange level of $161.21. The value denotes that the stock isn’t oversold or overbought.

In the second quarter, NVIDIA posted adjusted EPS of $1.24, beating analysts’ consensus estimate of $1.15. Its revenue came in at $2.58 billion, which was more than analysts’ consensus estimate of $2.55 billion. To learn more about NVIDIA’s fiscal 2020 second-quarter performance, read NVIDIA Earnings Revive Confidence: Is the Worst Over?


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