Nvidia: Some Thoughts On A Bottom

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About: NVIDIA Corporation (NVDA)
by: Nima Abbaszadeh
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Nima Abbaszadeh
Long only, long-term horizon, Growth and Value, technical analysis
Summary

The technical setup in Nvidia seems to indicate that further downside in the stock is limited as it nears a key support level.

Nvidia's depressed valuation metrics lead me to believe that the stock is attractively priced with respect to expected future earnings growth.

Based on what Nvidia and its peers have been saying in recent earnings reports, a trough for the chip sector appears likely in early- to mid-1H19.

After a 54% decline, I believe Nvidia offers a compelling, long-term risk/reward.

(Source: Variety)

Introduction

In my previous article on the stock of Nvidia Corporation (NVDA), "Nvidia: A Buy, But Not Yet", I had reached the conclusion that while the underlying company