Score 8.3 (out of 10): NVIDIA sets up for +13.4% rally in 2 months

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What’s Going On Here?

Nvidia’s P/E ratio of 60 appears to be reasonable for some growth-oriented tech stocks. Revenue climbed 61% year over year to $26.9 billion.

Why Now?

NVIDIA CORP has reached a new shorter-term high. Previously, during similar occasions, NVIDIA CORP shares had a median return of +13.4%, over the following 2 months – based on 10 historical occasions with 8 of those showing positive returns (80% hit ratio). This buy signal for NVIDIA CORP received a high score of 8.3 (out of 10). This insight was generated on 2022-March-17 with last price of 247.66.

What’s This Company About?

NVIDIA CORP is in the Electronic Compo-Semicon business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth +41% (average). Ticker symbol: NVDA US.

What’s My Risk / Reward and Time Horizon?

We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 280.79 (+13.4%) has been reached. Based on NVIDIA CORP’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 226.56 (last price at 247.66), which is equivalent to a -8.5% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

29.6% (October-2021), 0.3% (August-2021), 21.5% (April-2021), -7% (January-2021), -0.5% (October-2020), 32.9% (April-2020), 21.6% (December-2019), 15.5% (September-2019), 9.6% (June-2019), 11.2% (January-2019).

Historical Chart:

Summary:

NameNVIDIA CORP
ViewUp
Star (1 to 10)8.3
Target+13.4%
Time2 months
Hit Rate80%

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