Up $3.24 (3.19%) at $104.70.
Investor's Business Daily, Fri. Feb. 24:
Graphics chipmaker Nvidia (NVDA) saw its shares tumble for the second straight day on Friday, but reassuring comments from Wall Street analysts helped the stock recover some lost ground.
Nvidia stock dropped as much as 4.8% to 95.70 in morning trading on the stock market today. But shares clawed their way to a gain of 1% to 101.46 at the close.
On Thursday, Nvidia plummeted 9.3% to 100.49 after BMO Capital Markets and Nomura cut their ratings and price targets on the stock, saying it was overvalued. The stock sliced through its 50-day moving average, a key support level.
On Friday, Mizuho Securities and UBS reiterated this buy ratings on Nvidia, saying the pullback had created a buying opportunity.
IBD'S TAKE: Nvidia stock has shown signs of hitting a climax top. It touched an all-time high of 120.92 on Feb. 7, and at that point had been up 358% in the past year.
"We would be buyers with the recent 15% pullback in NVDA post earnings," Mizuho analyst Vijay Rakesh said in a report Friday. "Gaming and Deep Learning will continue to be long-term sustainable trends as new (game) titles get released and enterprise transforms from agility and speed to a smarter, efficient, predictive enterprise."
Rakesh maintained his price target of 130 on Nvidia.
UBS analyst Stephen Chin kept his 12-month price target of 132.
"We keep a buy rating on Nvidia as we expect data center sales to more than double over the next couple years to $2 billion-plus and a 15% growth CAGR in the core gaming GPU business," Chin said in a report.
Short-seller Citron Research announced Friday that it closed out its short position in Nvidia and had rotated into betting against car-sensor tech firm Mobileye (MBLY).
Nvidia is one of nine chip industry-related stocks on the IBD 50 list of top-performing growth stocks. Others include Broadcom (AVGO), InterDigital (IDCC) and Monolithic Power Systems (MPWR)....
Updating our $NVDA call....switching focus to $MBLY Ridiculous comparison We expect $MBLY to trade short term $35. Insiders tell the story pic.twitter.com/OwuC9xGRSu— Citron Research (@CitronResearch) February 24, 2017
