NVIDIA
START - $135.73 | FINISH - $160
- HORIZON: 3 months (Short-Term)
- FROM: 12 February 2025 | UNTIL: 12 May 2025
- MANAGEMENT ASSESSMENT: 17.86% growth
- RECOMMENDATION: BUY
TRADING PLAN
● Entry: Enter at or near $135.70 per share.
● Stop Loss: Set the stop loss at $120 to manage potential downside risk.
● Target: $160 by the end of the investment horizon, reflecting an anticipated 17.86% upside from the current price.
WHY THESE SHARES HAVE POTENTIAL FOR PROFIT
● Financial Performance: In Q3 FY2025, NVIDIA reported record revenue of $35.1 billion, a 17% increase from the previous quarter and a 94% year-over-year rise. This growth was primarily driven by the data centre division, which achieved $30.8 billion in revenue, up 112% from a year ago.
● Market Leadership in AI and Accelerated Computing: NVIDIA is a global leader in AI, GPU technology, and accelerated computing, powering over 75% of the world’s top supercomputers and cloud providers. Its full-stack platform, combining hardware, software, and algorithms, positions NVIDIA as an important enabler of AI growth, including generative AI and large language models (LLMs), ensuring its dominance in this rapidly growing market.
● Diversified Business Model: NVIDIA’s business spans multiple high-growth sectors, including data centres, gaming, automotive, and Omniverse. Its GeForce platform dominates gaming, its DRIVE platform leads in autonomous vehicles, and its Omniverse platform is transforming industries like manufacturing and robotics.
INDICATORS
The share is trading within an ascending channel pattern, consistently making higher highs and higher lows, indicating a strong uptrend. It recently tested the channel's lower boundary near the support level at $130 and successfully held above it, confirming support. Momentum indicators remain bullish, with the moving average convergence divergence (MACD) forming a bullish crossover on Monday, signalling potential upward momentum in the short term. A sustained move above this level could reinforce the bullish trend, with the next resistance level to watch at $150.
RISKS
● Valuation Risk: NVIDIA’s stock has seen rapid price appreciation due to its strong performance in AI and data centers. This has led to a high valuation, meaning the stock may be priced for near-perfect execution. If NVIDIA fails to meet market expectations, even slightly, the stock could experience significant volatility or a correction. Investors should be cautious about buying at peak valuations.
● Competition Risk: NVIDIA operates in a highly competitive market, including AI chips, GPUs, and data centre solutions. Competitors like AMD, Intel, and custom chip designers like Google and Amazon are developing their own AI and GPU technologies, which could erode NVIDIA’s market share.
Disclaimer:
*Any opinions, views, analysis or other information provided in this article is provided by BCS Markets SA trading as BROKSTOCK as general market commentary and should not be viewed as advice according to the FAIS Act of 2002. BCS Markets SA does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information provided by third parties. You must rely upon your judgement in all aspects of your investment decisions and all decisions are made at your own risk. BCS Markets SA and any of its employees shall not be responsible for and will not accept any liability for any direct or indirect loss including without limitation any loss of profit which may arise directly or indirectly from use of the market commentary. The content contained within the article is subject to change at any time without notice. BCS Markets SA is an authorised financial services provider FSP No. 51404.
** This article was prepared by BROKSTOCK analyst Maboko Seabi
Read also
BROKSTOCK SA (PTY) LTD is an authorised Financial Service Provider and is regulated by the South African Financial Sector Conduct Authority (FSP No.51404). BROKSTOCK SA (PTY) LTD Proprietary Limited trading as BROKSTOCK. BROKSTOCK SA (PTY) LTD t/a BROKSTOCK acts solely as an intermediary in terms of the FAIS Act, rendering only an intermediary service (i.e., no market making is conducted by BROKSTOCK SA (PTY) LTD t/a BROKSTOCK) in relation to derivative products (CFDs) offered by the liquidity providers. Therefore, BROKSTOCK SA (PTY) LTD t/a BROKSTOCK does not act as the principal or the counterparty to any of its transactions.
The materials on this website (the “Site”) are intended for informational purposes only. Use of and access to the Site and the information, materials, services, and other content available on or through the Site (“Content”) are subject to the laws of South Africa.
Risk notice Margin trading in financial instruments carries a high level of risk, and may not be suitable for all users. It is essential to understand that investing in financial instruments requires extensive knowledge and significant experience in the investment field, as well as an understanding of the nature and complexity of financial instruments, and the ability to determine the volume of investment and assess the associated risks. BROKSTOCK SA (PTY) LTD pays attention to the fact that quotes, charts and conversion rates, prices, analytic indicators and other data presented on this website may not correspond to quotes on trading platforms and are not necessarily real-time nor accurate. The delay of the data in relation to real-time is equal to 15 minutes but is not limited. This indicates that prices may differ from actual prices in the relevant market, and are not suitable for trading purposes. Before deciding to trade the products offered by BROKSTOCK SA (PTY) LTD, a user should carefully consider his objectives, financial position, needs and level of experience. The Content is for informational purposes only and it should not construe any such information or other material as legal, tax, investment, financial, or other advice. BROKSTOCK SA (PTY) LTD will not accept any liability for loss or damage as a result of reliance on the information contained within this Site including data, quotes, conversion rates, etc.
Third party content BROKSTOCK SA (PTY) LTD may provide materials produced by third parties or links to other websites. Such materials and websites are provided by third parties and are not under BROKSTOCK SA (PTY) LTD's direct control. In exchange for using the Site, the user agrees not to hold BROKSTOCK SA (PTY) LTD, its affiliates or any third party service provider liable for any possible claim for damages arising from any decision user makes based on information or other Content made available to the user through the Site.
Limitation of liability The user’s exclusive remedy for dissatisfaction with the Site and Content is to discontinue using the Site and Content. BROKSTOCK SA (PTY) LTD is not liable for any direct, indirect, incidental, consequential, special or punitive damages. Working with BROKSTOCK SA (PTY) LTD you are trading share CFDs. When trading CFDs on shares you do not own the underlying asset. Share CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail traders accounts lose money when trading CFDs with their provider. All rights reserved. Any use of Site materials without permission is prohibited.