Nvidia Corporation (NASDAQ:NVDA) shares are trading higher Friday as the stock recovers from a dip Thursday following June's inflation data release.
The Details:
Thursday's June inflation data came in cooler-than-expected, and the Consumer Price Index marked its lowest print since May 2020 with headline CPI inflation slowing from 3.3% in May 2024 to 3% in June 2024.
Anticipating rate cuts in the near-term, investors rotated out of mega cap tech stocks and into small cap names and debt-heavy sectors causing the Russel 3000 Index to gain more than 3% Thursday. Nvidia led the Nasdaq lower to close down 364 points Thursday, just one day after marking another record closing high on Wednesday.
According to SEC filings, Nvidia director Mark Stevens sold 785,000 shares valued at approximately $104 million on July 9 and July 10. Nvidia CEO Jensen Huang also sold 240,000 shares valued at approximately $31.86 million in addition to several other sales throughout the end of June and beginning of July.
Benzinga's Mark Putrino has chosen Nvidia as the Stock of the Day and identified a "bearish engulfing pattern" on the chart which may signify a move lower is coming. However, Benchmark analyst Cody Acree maintained the stock with a Buy and raised the price target from $135 to $170 on Friday.
According to data from Benzinga Pro, Nvidia shares are moving on below-average trading volume Friday and the stock remains above its 50-day moving average of $111.87.
NVDA Stock Prediction 2024:
When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.
When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.
Nvidia's revenue has grown at an average rate of 78.19% annually over the past 5 years. While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of NVIDIA have seen an annualized return of 83.93%, outperforming the S&P500 index by 75.53%. This compares to 28.65% growth in the overall Information Technology sector. NVIDIA has a beta of 2.05.
NVDA Price Action: According to Benzinga Pro, Nvidia shares are up 3.15% at $131.42 at the time of publication Friday.
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