Nvidia's (NVDA) growth trajectory in recent years has been nothing short of remarkable. Over the past five years, the company’s stock has skyrocketed by approximately 2,670%. In the last year alone, it surged 192.41%, with a staggering 167.48% of that growth occurring in 2024.
Nvidia has firmly established itself as a dominant force, not only within the semiconductor industry but also in the broader stock market. The stock remains one of the most actively traded, averaging 288.74 million shares over the past 30 days. With its pivotal role in driving the AI revolution, Nvidia is widely expected to lead the charge in the years ahead. But how does the stock stand from a technical and fundamental perspective? Let’s dive into the analysis using Trading Central’s research tools.
Recent developments in the stock price of Nvidia have created various technical alerts, including a very intriguing and inviting bullish symmetrical continuation triangle breakout on October 7th, which sees Nvidia targeting a price range between $170-$180 on a daily chart.
A symmetrical continuation triangle indicates that the current uptrend may continue. By showing two converging trendlines, the lower one ascending and the upper one descending, the formation occurs because prices are reaching both lower highs and higher lows. This pattern is confirmed when the price breaks out of the triangle formation to close above the upper (descending) trendline.
Though technically the stock looks enticing, it also holds some promise from a fundamental perspective.
According to Trading Central’s Fundamental Insight tool, Nvidia ranks as the top stock in terms of average trading volume over a 90-day period. Looking deeper, Nvidia holds a bullish TC Quantamental Rating of 64 out of 100, reflecting strong fundamentals compared to its industry peers. Its highest Factor Scores are in Quality (94/100), showcasing superior profitability ratios, leverage, and operating margins, and Growth (92/100), indicating robust EPS and revenue growth that outperformed the competition in the last quarter.
While Nvidia’s current TC Quantamental Rating is just shy of its record high of 65, it remains impressive, especially when compared to the rating of 29 seen in late 2022 and early 2023. By comparing Nvidia’s rating with those of its semiconductor peers, it’s clear that the company stands among the best in its industry. This reinforces that the excitement surrounding Nvidia is well-founded, backed by solid performance metrics.
Though Nvidia’s future is not without risks—especially with the upcoming U.S. Presidential Election, which could bring tariffs to the industry, potential government restrictions on AI chip sales, or escalating tensions between China and Taiwan—the company remains well-positioned to stay at the forefront of the semiconductor industry.
