The absolute leader in graphic processing units 
NVIDIA has dropped nearly 50% from its historic high.
Is it still overpriced or is it time to start buying some shares of the giant?
Fundamental indicators:
Technical Analysis (Elliott Waves):
Risks:
All of this including forecasts and assessment of the risks will be cleared in the next report planned for 25 May.
What do you think about the prospects forNVIDIA?
Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.
Thanks
NVIDIA has dropped nearly 50% from its historic high. Is it still overpriced or is it time to start buying some shares of the giant?
Fundamental indicators:
- Revenue and Profits - exponential growth for the past 10 years
- Profit margin - very effective, one of few companies with impressive 36%
- P/E - still overpriced at 48x, however it has considerably dropped from circa 90x just two years ago
- Liabilities - no problems with debt
Technical Analysis (Elliott Waves):
- Since IPO NVIDIA resembles parabolic graph. However, there might be few alternative options to count waves using Elliott Wave theory hence this presents additional risks
- Presented scenario suggests that after forming the historic high in November 2021 there was a sharp correction of nearly 50%
- Few alternatives for the developing wave 4 may include - (1) Flat Correction (ABC), (2) Contracting Triangle and (3) Running Correction
- The last scenario has been selected due to the following reasons - as the leader in this sector NVIDIA is still most likely to enjoy increased interest from the investors, as there are not that many growth companies left, and given the exponential pattern of the graph every time the price touches Moving Average investors are most likely to buy all the dips
Risks:
- Recession - looming recession is going to have inevitable impact even on the leader of this industry
- Crypto - Ethereum's move to proof-of-stake model is projected to reduce the need for graphic processing units. However, Bitcoin and other coins using proof-of-work model are still going to remain the main clients
All of this including forecasts and assessment of the risks will be cleared in the next report planned for 25 May.
What do you think about the prospects for
NVIDIA?Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.
Thanks
In search of the optimal signals
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
In search of the optimal signals
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.