Nvidia: Anything but uninteresting …

Price Return on Nvidia Disappoints

Nvidia posted a performance of -46.23 percent over the past 12 months. Similar stocks in the “semiconductor and semiconductor equipment” sector have risen an average of 44.07 percent, which translates to an underperformance of -90.3 percent for Nvidia on an industry comparison. The “information technology” sector had a median return of 57.49 percent over the past year. Nvidia was 103.72 percent below that average. The underperformance in both the industry and sector comparisons results in a “Sell” rating in this category.

Nvidia undervalued by comparison

Nvidia’s stock is considered undervalued by the price-to-earnings (P/E) ratio measure. This is becauseThe P/E ratio of 26.63 is 66 percent lower overall than the industry average in the “semiconductor and semiconductor equipment” segment, which is 77.29. Against this backdrop, the stock receives a “buy” rating from a fundamental analysis perspective.

What price signals does sentiment send?

One of the soft factors in assessing a stock is the long-term observation of communications on the network. From this point of view, Nvidia’s stock has given the following picture for the past monthsThe intensity of discussion, which is mainly shown by the frequency of word contributions, has produced the usual activity on the net in this regard. Therefore, Nvidia receives a “Hold” rating for this factor. The so-called rate of mood change shows a change to the positive. This is equivalent to a “Buy” rating. This makes Nvidia a “Buy” stock overall.

Price evaluation with the help of the RSI

A well-known means from technical analysis to assess whether a title is currently “overbought” or “oversold” is the Relative Strength Index (RSI). This puts price movements over time in relation to each other. We look at the RSI on a 7-day and 25-day basis for Nvidia. Let’s start with the 7-day RSI, which is currently 57.07 points. This means that Nvidia is neither overbought nor -sold at the moment. The stock is thus rated as a “hold”. How does the 25-day RSI look? Here, too, Nvidia is neither overbought nor oversold (value31.54), thus the stock also receives a “hold” rating for the RSI25. The bottom line is that Nvidia is rated “Hold” for this point in our analysis.

Technical analysis of the share price

On the basis of the moving average price, Nvidia is currently a “Sell”. This is because the value’s GD200 runs at the level of 179.09 USD, which means that the share price (162.7 USD) is -9.15 percent above this trend signal. This corresponds to the classification as “Sell”. Based on the past 50 days, this results in a moving average price (GD50) of USD 134.98. This in turn corresponds to a deviation of +20.54 percent from the perspective of the share price itself. This means that the share is a “buy” stock over this period. Overall, this corresponds to a “Hold” rating.

Nvidia currently no dividend king

The dividend yield is calculated from the dividend paid and the respective share price. Nvidia currently has a dividend yield of 0.1%. This yield is lower than the industry average (“Semiconductor and semiconductor equipment”) of 14.71%. With a difference of only 14.61 percentage points, this results in a “Sell” rating with respect to the dividend paid.

Investors are positive

Share prices can be assessed by soft factors such as sentiment, in addition to hard factors such as balance sheet data. Our analysts looked at Nvidia on social platforms and measured that the comments or findings have been mostly positive. However, social media users around Nvidia have been mostly neutral in recent days. Thus, the stock receives a Buy rating for this observation. Furthermore, this analysis was enriched by looking at trading signals. Six concretely calculated signals are available (4 “Buy”, 2 “Sell”), resulting in a “Buy” rating at the level of trading signals. Thus, the editors come to the conclusion that Nvidia must be classified as “Buy” in terms of sentiment.