NVIDIA Corporation: Take Profit – Position Closed May 17, 2017

Description

NVIDIA Corporation (NASDAQ:NVDA) engages in Visual Computing. The Company operates through its GPU and Tegra Processors. The GPU businesses include GeForce for personal computer gaming, Quandro for computer aided design, video editing, special effects, and other creative applications; Tesla for deep learning and general purpose computing; GRID for cloud and data centres. NVDA’s Tegra processors are primarily designed for its DRIVE, which provide automotive computing for driving and SHIELD, which designs devices to harness the power of mobile cloud for gaming.

Source: Thomson Reuters

Investment Action

Since our latest note on NVDA, the stock has surpassed our target price of USD 127.50. To recap, NVDA reported much better than expected earnings, with revenue up 48% YoY and GAAP EPS up 126% YoY. While NVDA has continued to trend upwards, we have decided to close the trade. The stock is at its all-time high at USD 136.81 with momentum continuing after better than expected earnings, however we feel that given the run up, NVDA at current price is close to Fair Value. We will continue to monitor the stock in the event of a pull back for opportunities to re-enter.

Investors may wish channel their funds into other opportunities that we have identified:

Advanced Micro Devices Inc (NASDAQ:AMD) – (Click here to view the full report)

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About the author

Profile photo of Ho Kang Wei

Ho Kang Wei
Investment Analyst
Phillip Securities Research Pte Ltd

Ho Kang Wei graduated with a Bachelor of Commerce, majoring in Accounting and Finance, from Monash University.

He started analysing and investing in US equity markets since 2008. Joining Phillip Securities Research in 2015, he is the analyst in charge of US markets.

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