Nvidia Corp. (NVDA): Technical & Fundamental Analysis

STA Research
March 24th, 2025
Nvidia Corp. (NVDA) Outlook Brightens as Alibaba and ByteDance Pursue H200 Chips and Analysts Forecast 36% Upside
LinkedInBufferRedditTumblrWhatsApp

Nvidia (NVDA)

About StockTargetAdvisor.com (STA Research): Is a Canadian investment research company specializing in advanced stock research and analysis. Our small research team comprises of Financial & Academic Professionals.

Current Technical Analysis

The current technical analysis of Nvidia’s stock based on data from Friday’s trading suggests:

  1. Stay Long on the stock, but Watch Out for Risk: Despite a minor decline in price since the BUY signal on 03/20/2025, the recommendation is to stay long. However, there’s an emerging bearish pattern that signals caution.

  2. Bearish Candlestick Pattern: A Harami-like pattern has formed, where a smaller white candlestick is enclosed within a larger white candlestick. This pattern indicates potential weakness and a slowdown in bullish momentum, which could lead to a price reversal.

  3. Market Focus Shifting Downside: The overall sentiment is turning bearish, suggesting that investors should be cautious and monitor the stock for any further signs of weakness.

  4. Potential for a SELL Signal: If the stock continues to show weakness or breaks certain price levels, the system could trigger a SELL signal, indicating a shift to a bearish trend.

  5. Intraday Monitoring: Given the risks, it’s crucial to closely track intraday price movements. Small fluctuations can provide important clues about whether the stock will continue to fall or regain momentum.

Stock Forecast & Analysis

  • Analyst Ratings and Target Price:

    • Strong Buy Rating: Based on the analysis from 40 analysts, Nvidia has an average Strong Buy rating. This is a positive sign that a significant number of analysts are optimistic about the stock’s future performance. A Strong Buy rating typically means that analysts expect the stock to outperform the market in the medium to long term, driven by Nvidia’s solid fundamentals, competitive positioning, and industry leadership.

    • Target Price of USD 171.65: The average 12-month target price for Nvidia is USD 171.65, representing a 45.7% upside potential from the current stock price of USD 117.70. This target suggests that analysts are confident that Nvidia has significant growth potential, particularly considering its leadership in the semiconductor and AI sectors, which are both high-growth industries.

  • Stock Target Advisor’s Rating:

    • Slightly Bullish: Stock Target Advisor’s analysis of Nvidia is Slightly Bullish. This analysis is based on 12 positive signals and 7 negative signals, implying a favorable outlook but with some risks that could hinder performance.

Recent Stock Performance

  • Price Movements:

    • -3.26% over the past week: Nvidia’s stock has faced a modest decline over the past week, suggesting that the stock might be experiencing some short-term pressure. This could be in response to broader market trends, or it could be related to the emergence of bearish technical patterns.

    • -12.45% over the past month: The stock has seen a larger decline over the past month, which could reflect broader sector weakness, investor sentiment shifts, or potential issues in Nvidia’s business performance or market positioning.

    • +24.83% over the past year: On a yearly basis, Nvidia has delivered strong performance with a +24.83% gain, reflecting the company’s solid growth trajectory, particularly in areas like artificial intelligence (AI), gaming, and data center solutions. The year-over-year growth suggests that Nvidia remains well-positioned for long-term success, despite recent short-term declines.

Outlook

  • Technical Outlook: The technical analysis of Nvidia’s stock shows a bearish pattern emerging, which warrants caution. Despite this, the current recommendation is to stay long, but investors should be vigilant for potential confirmation of a SELL signal. The increased risk due to the bearish candlestick pattern requires careful monitoring of intraday price movements and stop-loss levels to manage risk effectively.

  • Fundamental Outlook: The fundamental analysis remains positive, with Nvidia benefiting from strong growth in AI, semiconductor technology, and gaming. Analysts have set an average target price of USD 171.65, suggesting significant upside potential in the medium to long term. However, short-term volatility and market corrections pose risks, as reflected in the recent decline over the past month.

  • Consideration: While the technical outlook suggests caution in the short term, Nvidia’s strong fundamentals and future growth potential make it a Buy for long-term investors. Monitoring both the technical indicators and market conditions is crucial to navigating short-term volatility.

Ad