NVIDIA: One Chart Explaining the Runup

NVIDIA is a Magnet for Big Money

So, what’s Big Money? Said simply, that’s when a stock presses higher alongside chunky volumes. It’s indicative of institutions betting on the shares.

Unsurprisingly, NVIDIA has many fundamental qualities that are attractive.

This sets up well for the stock going forward. Paying attention to how the shares trade, suggests there could be more upside.

The last 6 months have seen monster accumulation signals. Each green bar signals big buying volumes as the stock ramped in price:

 

Since November, the stock has been one of the most bought stocks in our data. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out the technical action grabbing my attention:

• Year-to-date outperformance vs. Technology Select Sector SPDR Fund ETF (+75% vs. XLK)

Outperformance is important for leading stocks.

NVIDIA Fundamental Analysis

Now, let’s dive into fundamentals. NVIDIA has had double-digit 3-year sales growth, and the future earnings outlook is solid too. Take a look:

• 3-year sales growth rate (+38.1%)
• 1-year EPS growth estimate (+33.9%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, NVDA has been a top-rated stock at MAPsignals for years. That means the stock has had buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this every week.

It’s made the rare Top 20 report numerous times since 2015. The blue bars below show when NVDA was a top pick:

Tracking unusual volumes reveals the power of the MAPsignals process.

NVIDIA Price Prediction

The NVIDIA rally has been in place for months. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in NVDA at the time of publication.

Learn more about the MAPsignals process here.

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