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Despite A Hard Loss, Nvidia Is Still Winning

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Despite A Hard Loss, Nvidia Is Still Winning
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Before the tech sell-off at the end of last week, NVIDIA Corporation (NASDAQ: NVDA)’s astronomic run just kept hitting new heights. Shares were trading almost 3 percent higher in June 9’s pre-market session on news that Bank of America and Argus raised their price target.

Argus’ new price target for the company is at $175 from $140, and Bank of America moved even higher to $185 from $155.

Since its huge first quarter beat reported on May 9, shares are up 44.7 percent. Nvidia has beat the Street every quarter since 2011.

Nvidia was the best performing stock in the S&P 500 in 2016, but it seems like the investors have mostly doubled down, staying bullish rather than closing their positions with a win.

"In the recent frenzy in NVIDIA shares, it has added more to its market cap than the total valuation of its competitor AMD. Now it is fueled by an irresponsibly bullish number from Citi,” said a Citron report on June 9.

Nvidia share’s peaked at $168.14, when Goldman Sachs analyst Robert Boroujerdi’s comments set off the sectorwide sell-off of tech stocks.

Nvidia was especially hard hit when Citron Research’s Andrew Left advised shorting the stock and went on CNBC to drive home his point. The stock dropped 15 percent, bottoming on June 9 at $142.97 before pulling up a bit to close at $149.60.

Even with this sharp loss, the company is still up 41.9 percent this year.

How The Industry Stacks Up

Nvidia’s closest competitor Advanced Micro Devices, Inc. (NASDAQ: AMD) has also had a strong performance since the May 9 report — shares were up more than 30 percent before the sell-off.

Like Nvidia, the semiconductor sector is still doing well on the whole. Nearly all the other major players are also up with double-digit gains by percent this year:

  • Advanced Micro Devices was up 17.4 percent, but after the sell-off, it’s at 4.4 percent.
  • Micron Technology, Inc. (NASDAQ: MU) is up 42.5 percent.
  • Skyworks Solutions Inc (NASDAQ: SWKS) is up 39.4 percent.
  • Broadcom Ltd (NASDAQ: AVGO) is up 37.5 percent.
  • Microchip Technology Inc. (NASDAQ: MCHP) is up 29.6 percent.
  • Cypress Semiconductor Corporation (NASDAQ: CY) is up 20.1 percent.
  • Texas Instruments Incorporated (NASDAQ: TXN) is up 10.7 percent.

Intel Corporation (NASDAQ: INTC) seems to be the outlier, but could be on the verge of a significant move. Before the sell-off, the stock is not even up 0.1 percent this year, as of Tuesday it is down 1.1 percent.

Related Links:

The Bull Case For Nvidia: $300 Per Share?

Nvidia Will Maintain 'Dominant Market Share' Thanks To New Volta Chip

Posted-In: Andrew Left ArgusAnalyst Color News Short Sellers Movers Tech Trading Ideas Best of Benzinga

 

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