The last time I highlighted opportunity in NVIDIA (NASDAQ:NVDA), I called it one of the top “blood in the streets” opportunity. I also said NVDA stock was aggressively oversold on relative strength, MACD, and Williams’ %R.
In fact, if you look at a two-year chart of the NVDA, you can see that when these technical indicators align in either oversold or overbought territory, we typically see a pivot in the other direction. I also noted there were a good deal of catalysts that were likely to drive it higher.
At the time, the NVDA stock traded at a low of $243.48. It’s now topped $553.
Even now, I’d back up the truck on the NVDA stock. Once it breaks above double top resistance at $589.07, the technology stock could easily see $600, near-term.
A Closer Look at NVDA Stock
New gaming consoles from Microsoft (NASDAQ:MSFT) and Sony Corporation (NYSE:SNE) will be launched later this year, and serve as a major catalyst, as I also noted in March.
At the time, Bernstein analyst Stacy Rasgon also said NVDA could benefit from a PC GPU upgrade cycle on par with what was seen following the launch of prior generation consoles, as highlighted by Benzinga contributor, Shanthi Rexaline.
With millions working, schooling and playing online, the teleconference boom has been explosive. Capitalizing on the momentum, Nvidia announced a new platform called Maxine that will help make online video experiences far better.
“One of the biggest challenges in videoconferencing is video quality,” says Motley Fool contributor Nicholas Rossolillo. “Reducing the number of pixels lowers the required bandwidth of the video stream, which improves video quality.”
In addition, in its most recent earnings report, the company’s data center revenue soared to $1.75 billion, up 167% year over year. Revenue could rocket even higher after the company announced its new line of data processing units (DPUs) and data center architecture.
It also announced an expanded partnership with VMWare (NYSE:VMW) to create a data center platform that supports graphics processor unit (GPU) acceleration.
NVDA Stock Has a Bright Future
NVIDIA and SoftBank Group just announced a deal where NVDA will acquire Arm in a deal valued at $40 billion. This will help create push NVDA deeper into artificial intelligence with its AI computing platform.
After all, “AI is the most powerful technology force of our time and has launched a new wave of computing,” said Jensen Huang, founder and CEO of NVIDIA. “In the years ahead, trillions of computers running AI will create a new internet.”
Wedbush analyst Matt Bryson just raised his price target on NVDA to $600 from $525 thanks to company fundamentals. He also likes NVIDIA’s strength in AI and gaming.
BMO Capital analyst Ambrish Srivastava raised the firm’s price target on NVDA to $650 from $565.
Even Needham analyst Rajvinda Gill has a buy rating on the NVDA stock with a near-term price target of $700. That’s thanks in part to the acquisition of Arm, and the company’s growth in artificial intelligence. The analyst also said NVIDIA’s data center total addressable market could double from $50 billion to $100 billion in the next four years with new processors.
Even better, NVIDIA Director Stephen Neal just bought another 498 shares for $250,000 at an average price of $500.95. He now owns 4,476 shares to date.
The Bottom Line on NVIDIA Stock
Again, I’d back up the truck on the NVDA stock. Once it breaks above double top resistance at $589.07, the technology stock could easily see $600, near-term. With plenty of near-term catalysts, and love from analysts, higher highs won’t be a problem for the NVIDIA stock.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.