Score 8.9 (out of 10): NVIDIA sets up for +13.4% rally in 2 months

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What’s Going On Here?

NVIDIA could be the big winner of the ‘metaverse’ – not Meta/Facebook. Nvidia will be granting free licenses for its Omniverse software to artists and other creatives, who will help build virtual worlds for the metaverse.

Why Now?

NVIDIA CORP has triggered a new high volatility signal (3 month). During similar occasions, NVIDIA CORP shares had a median return of +13.4%, over the following 2 months – based on 10 historical occasions with 9 of those showing positive returns (90%). This buy signal for NVIDIA CORP received a high score of 8.8 (out of 10). This insight was generated on 2022-February-3 with last price of 252.

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 +49.5% (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 271.52 (+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 236.98 (last price at 239.48), which is equivalent to a -1% 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’ shown under (2), etc. 

Previous episodes:

24% (December-2021), 10.8% (May-2020), 16% (March-2020), 23% (December-2018), 9.4% (October-2018), 8.7% (January-2017), -2.6% (November-2016), 5.3% (February-2016), 33.1% (October-2015), 41.4% (August-2015).

Historical Chart:

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Summary:

NameNVIDIA CORP
ViewUp
Star (1 to 10)8.9
Target+13.4%
Time2 months
Hit Rate90%

Popular Insights:

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