NVIDIA's Stock Is On Quite The Run

NVIDIA Corporation NVDA is up 10 percent this week after a strong earnings beat last Thursday.

The stock has been a runaway-hit with investors as its gaming and data center segments fared exceedingly well. The company also issued upbeat revenue.

The stock rallied roughly 30 percent on November 11, reaching a record high. However, in the next session, profit taking led to stock slipping about 5 percent. Since the November 12 loss, the stock has moved higher for three straight sessions.

Positive analysts' opinions in the aftermath of the stellar quarterly results seems to be doing the trick.

Among the notable sell-side analysts' actions on the company's shares are:

• Barclays raised its rating on to Equal-Weight from Underweight and lifted its price target to $72 from $54.
• Jefferies reiterated its Buy rating on shares, while it raised its price target to $95 from $80.
• BMO said it continues to rate NVIDIA a Market Perform but raised its price target to $75 from $59.
• Pacific Crest maintained its Sector Weight rating on the stock, with a fair value estimate of $80.
• Needham upgraded NVIDIA to Buy.

The cumulative post-earnings gains are now about 36 percent and it has managed to beat the upwardly revised price targets of most analysts.

Meanwhile, a report by DigiTimes quoting IC Insight said NVIDIA is the fastest-growing semiconductor company for 2016.

Does Rally Have Further Legs To Play Out?

The 14-day relative strength index, a momentum indicator, is currently in overbought territory (75.51), suggesting that some moderation in the upward move is likely. However, giving a bullish undertone, the shorter-term (50-day SMA) is above the longer-term (200-day SMA).

In the eventuality of the run up generating weakness, the stock may find support around the $72 level. A break below this level could see the stock stopping at its 50-day SMA, which is currently at $68.36.

NVIDIA closed Thursday's session up 0.83 percent at $92.39.