NVIDIA Corporation [NVDA] gain 122.49% so far this year. What now?

NVIDIA Corporation [NASDAQ: NVDA] stock went on a downward path that fall over -2.62% on Friday, amounting to a one-week price decrease of less …

NVIDIA Corporation [NASDAQ: NVDA] stock went on a downward path that fall over -2.62% on Friday, amounting to a one-week price decrease of less than -1.57%. The company report on November 19, 2020 that NVIDIA Announces Financial Results for Third Quarter Fiscal 2021.

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Record revenue of $4.73 billion, up 57 percent from a year earlier.

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Record Gaming revenue of $2.27 billion, up 37 percent from a year earlier.

Over the last 12 months, NVDA stock rose by 149.08%. The one-year NVIDIA Corporation stock forecast points to a potential upside of 10.85. The average equity rating for NVDA stock is currently 2.00, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $331.71 billion, with 618.00 million shares outstanding and 589.09 million shares in the current float. Compared to the average trading volume of 13.11M shares, NVDA stock reached a trading volume of 8441874 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on NVIDIA Corporation [NVDA]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NVDA shares is $587.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NVDA stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Cascend Securities have made an estimate for NVIDIA Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 12, 2020. The new note on the price target was released on October 09, 2020, representing the official price target for NVIDIA Corporation stock. Previously, the target price had yet another raise from $565 to $650, while BMO Capital Markets kept a Outperform rating on NVDA stock. On October 02, 2020, analysts increased their price target for NVDA shares from 525 to 600.

The Average True Range (ATR) for NVIDIA Corporation is set at 20.96, with the Price to Sales ratio for NVDA stock in the period of the last 12 months amounting to 22.45. The Price to Book ratio for the last quarter was 21.10, with the Price to Cash per share for the same quarter was set at 16.00. Price to Free Cash Flow for NVDA in the course of the last twelve months was 86.47 with Quick ratio for the last quarter at 3.50.

NVDA Stock Performance Analysis:

NVIDIA Corporation [NVDA] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.57. With this latest performance, NVDA shares dropped by -2.05% in over the last four-week period, additionally plugging by 50.13% over the last 6 months – not to mention a rise of 149.08% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NVDA stock in for the last two-week period is set at 47.85, with the RSI for the last a single of trading hit 43.63, and the three-weeks RSI is set at 48.48 for NVIDIA Corporation [NVDA]. The present Moving Average for the last 50 days of trading for this stock 532.18, while it was recorded at 535.15 for the last single week of trading, and 397.16 for the last 200 days.

Insight into NVIDIA Corporation Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and NVIDIA Corporation [NVDA] shares currently have an operating margin of +26.48 and a Gross Margin at +62.13. NVIDIA Corporation’s Net Margin is presently recorded at +25.61.

Return on Total Capital for NVDA is now 22.09, given the latest momentum, and Return on Invested Capital for the company is 21.44. Return on Equity for this stock inclined to 25.95, with Return on Assets sitting at 18.27. When it comes to the capital structure of this company, NVIDIA Corporation [NVDA] has a Total Debt to Total Equity ratio set at 21.66. Additionally, NVDA Total Debt to Total Capital is recorded at 17.80, with Total Debt to Total Assets ending up at 15.26. Long-Term Debt to Equity for the company is recorded at 20.91, with the Long-Term Debt to Total Capital now at 17.19.

Reflecting on the efficiency of the workforce at the company, NVIDIA Corporation [NVDA] managed to generate an average of $202,976 per employee. Receivables Turnover for the company is 7.09 with a Total Asset Turnover recorded at a value of 0.71.NVIDIA Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.50 and a Current Ratio set at 3.90.


With the latest financial reports released by the company, NVIDIA Corporation posted 1.89/share EPS, while the average EPS was predicted by analysts to be reported at 1.67/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 13.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NVDA. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for NVIDIA Corporation go to 21.47%.

NVIDIA Corporation [NVDA] Insider Position Details

There are presently around $216,926 million, or 69.30% of NVDA stock, in the hands of institutional investors. The top three institutional holders of NVDA stocks are: VANGUARD GROUP INC with ownership of 48,498,024, which is approximately -1.063% of the company’s market cap and around 0.30% of the total institutional ownership; FMR LLC, holding 44,653,916 shares of the stock with an approximate value of $23.38 billion in NVDA stocks shares; and BLACKROCK INC., currently with $23.02 billion in NVDA stock with ownership of nearly 0.837% of the company’s market capitalization.

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Positions in NVIDIA Corporation stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 984 institutional holders increased their position in NVIDIA Corporation [NASDAQ:NVDA] by around 11,172,275 shares. Additionally, 999 investors decreased positions by around 23,058,670 shares, while 170 investors held positions by with 380,136,968 shares. The mentioned changes placed institutional holdings at 414,367,913 shares, according to the latest SEC report filing. NVDA stock had 258 new institutional investments in for a total of 849,808 shares, while 106 institutional investors sold positions of 3,549,184 shares during the same period.

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Cloud Capex Looks Poised to Grow Strongly in 2021

So does — as Nvidia (NVDA) – Get Report likes to stress — continued growth in AI-related investments, both for training increasingly complex deep …

Though cloud capital spending is taking a breather right now, there are a lot of signs suggesting that spending will start growing again in early 2021.

In a note released on Monday morning, Mizuho Securities reported that Asian supply chain checks and talks with U.S. hardware OEMs pointed to a strong rebound in cloud server spending in the first quarter and first half of 2021, following a soft Q4.

Analyst Vijay Rakesh estimates that data center capex among internet/cloud giants (i.e., hyperscalers) could be up 10% to 15% sequentially in Q1. Facebook  (FB) – Get Report and Microsoft  (MSFT) – Get Report in particular were singled out as hyperscalers expected to strongly grow their capex in early 2021.

Facebook, it’s worth noting, has guided for total 2021 capex of $21 billion to $23 billion, well above expected 2020 capex of roughly $16 billion. This forecast covers not only expected hardware purchases, but also expected spending on things such as data center construction and real estate purchases.

Meanwhile, several major chip and component suppliers to the hyperscalers, including Intel  (INTC) – Get Report, Micron  (MU) – Get Report, Seagate  (STX) – Get Report, Western Digital  (WDC) – Get Report and Samsung, have also indicated that they expect hyperscaler demand to be strong in 2021, as they move past a current digestion period that’s following strong first-half orders.

“I think calendar 2021 is shaping up for a really good year for cloud [sales],” said Micron CFO Dave Zinsner during a recent Bernstein conference talk. “All of the cloud customers that we’ve heard from have talked fairly positively about their capex investments both for this year and next year,” he later added.

Seagate forecast on its Oct. 22 earnings call that its sales to hyperscalers, which were down sharply on a sequential basis during its September quarter, would rise sequentially during its next three quarters. Western Digital forecast that inventory corrections among its cloud customers would continue into the December quarter, but said that it’s more positive about expected 2021 demand.

Steady increases in the processing, memory and storage needs of major internet/cloud workloads — everything from video streaming, to cloud infrastructure services, to complex search and news feed algorithms — remains a tailwind for cloud capex. So does — as Nvidia  (NVDA) – Get Report likes to stress — continued growth in AI-related investments, both for training increasingly complex deep learning models, and using them to help power various services.

Also, as Samsung indicated, pending Intel and AMD  (AMD) – Get Report server CPU refreshes are likely to give cloud capex an early-2021 boost.

On its Oct. 22 earnings call, Intel forecast that its next-gen Xeon server CPU line — it’s codenamed Ice Lake, and is the first to rely on Intel’s 10-nanometer manufacturing process node — would begin seeing a volume ramp in Q1 2021. The company previously guided for Ice Lake to begin seeing volume shipments in Q4 2020.

On its Oct. 27 earnings call, AMD forecast its next-gen Epyc server CPU line — it’s codenamed Milan, and will rely on AMD’s new Zen 3 CPU core microarchitecture — will begin seeing volume shipments to cloud and “select” high-performance computing (HPC) clients in Q4, followed by broader OEM availability in Q1.

Facebook, Microsoft, and Nvidia are holdings in Jim Cramer’sAction Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells these stocks? Learn more now.

M&A Is Back. These Industries Are Ready for More Deals.

Semiconductors could see more deals as well. Nvidia (NVDA) has already bought Arm Holdings from SoftBank for $40 billion. Advanced Micro Devices ( …

Yet the recovery has been equally sharp. Deal volumes reached around $205 billion in the past month, Citi’s data show.

Going forward, “attractive financing costs, vaccine optimism, SPAC fundraising and even a potentially less contentious global trade backdrop all could contribute to a pickup in deal activity,” wrote Tobias Levkovich, chief U.S. equity strategist in a note.

The Federal Reserve has aggressively lowered interest rates, reducing the cost of funding for deals. Expectations that one or more vaccines will soon be available provide the kind of positive backdrop acquirers need in order to have conviction about making a purchase.

And SPACS—special-purpose acquisition corporations that raise money through an initial public offering in order to buy companies—have raised more than $64 billion this year. SPACs raised just $13 billion in all of 2019, according to data from Spacinsider.

The deal activity could provide support for the stock market, which has lost an important buyer this year: companies themselves. Corporations have spent far less to buy back their own shares this year than last because the uncertainty created by the pandemic has made it critical to conserve cash.

Although more deals “likely will not offset the sharp decline in share buybacks, they can help at the margin,” Levkovich said.. Strategists at JPMorgan are more upbeat. The bank’s data show buybacks in the U.S. were running at an annual rate of roughly $430 billion in May, down from just under $800 billion for all of last year. Yet according to the bank, that decline was more offset by stronger-than-expected M&A activity.

The value of shares added to the market via IPOs and other offerings outstripped that of stock removed via factors such as buybacks and mergers by $320 billion for the first 10 months of the year, a smaller figure than in 2019, according to the bank. Lower supply means support for the price of stocks.

“The M&A wave has further to run,” Citi said in its note. The bank has some predictions on where more deal activity might come from.

The energy industry is one key area. The price of crude oil has flatlined at just above $40 a barrel since late June, nowhere near the $63 level seen in January. At the same time, the rise of clean energy and potential regulation are threatening fossil fuels’ share of the energy market.

As the industry shifts toward a lower-growth model, exploration and production companies are looking at trying to generate returns via deals that would yield economies of scale and other benefits, according to Citi’s energy analysts.

Cimarex Energy (XEC), with a market capitalization of $3.5 billion, is a potential target, Citi said.

Biotech deals could surge in 2021, Citi said. Its analysts said prospects for earnings at Amgen (AMGN), Gilead Sciences (GILD) and Biogen (BIIB) are worsening, creating a need for the companies to buy assets that would beef up their pipelines of new drugs. Their earnings per share for the next three years are expected to compound at annual rates of 6%, 4%, and negative 9%, respectively, according to Citi.

“Biogen does need to buy something, especially, as the prospects of Aducanumab getting approved look grim,” Citi said. Aducanumab is a prospective treatment for Alzheimer’s.

Semiconductors could see more deals as well. Nvidia (NVDA) has already bought Arm Holdings from SoftBank for $40 billion. Advanced Micro Devices (AMD) bought Xilinx for $30 billion. Both deals aim to capture market share in the growing cloud-computing business.

One buyout candidate, according to Citi, is ON Semiconductor (ON), with a market cap of $11 billion. The need for automotive chips is on the rise, and ON Semiconductor derives about 58% of its revenue from the automotive and industrial markets. That could make it attractive to acquirers who want to establish market share in those segments.

Deals are back. The key for investors is to find the targets, or the acquirers.

Levels’ $12 Million Seed Financing Round

… announced its $12 million seed financing round led by Andreessen Horowitz. The round also includes participation from angel investors, including …

Fenwick & West LLP advised Levels on the deal.

Levels, a biowearable system that provides feedback on how your diet impacts your metabolism, announced its $12 million seed financing round led by Andreessen Horowitz. The round also includes participation from angel investors, including Netflix co-founder and first CEO Marc Randolph, former Twitter CEO Dick Costolo, TechCrunch founder Michael Arrington and NBA Cleveland Cavaliers player Matt Dellavedova.

Levels will use the financing to bring biowearables into the mainstream and help users to improve metabolic health and fitness.

The Fenwick transaction team included corporate partner Joshua Geffon (Picture) and associates Caroline Wells and John Clancy.

Involved fees earner: John Clancy – Fenwick & West LLP; Joshua Geffon – Fenwick & West LLP; Caroline Wells – Fenwick & West LLP;

Law Firms: Fenwick & West LLP;

Clients: Levels;

Roblox IPO filing shows revenue surge as gaming thrives during pandemic

Andreessen Horowitz, where it raised $150 million. Reuters reported in October that Roblox expects that going public would double that valuation.

By Anirban Sen

3 Min Read

(Reuters) – Roblox Corporation’s revenue surged in the first nine months of the year, a regulatory filing showed on Thursday in the gaming platform’s first public disclosure of its finances ahead of a U.S. stock listing later this year.

FILE PHOTO: Alice Wilkinson (7) adds a face mask to her character on the game ‘Roblox’ at her home in Manchester, as the spread of the coronavirus disease (COVID-19) continues, Manchester, Britain, April 5, 2020. REUTERS/Phil Noble/File Photo

The IPO plans comes as U.S. demand for video games ramps up with consumers seeking home entertainment amid long periods of home confinement during coronavirus lockdowns.

Roblox’s revenue jumped 68% to $588.7 million for the first nine months of 2020, while net loss attributable to common shareholders widened to $203.2 million compared with $46.3 million a year earlier, the filing showed.

Roblox amortizes revenue from sales on its platform over the duration of its paying user accounts, which is around two years. Roblox’s sales in the first nine months of 2020 totaled $1.24 billion, up 170% on a year earlier.

Looking to cash in on the boom in demand, several gaming firms are aiming to float their shares as U.S. markets hover at record levels this year. Unity Software U.N went public in September, while Playtika is gearing up to debut on the U.S. exchanges in the coming months.

U.S. consumer spending on video games rose 24% year-on-year to a record $11.2 billion in the third quarter, research firm NPD Group said.

Roblox, which is among the world’s most popular gaming sites for children and offers a host of games across mobile devices and games consoles, said its daily active user base soared 82% to 31.1 million in the nine months ended Sept. 30 from the same period a year ago.

The San Mateo, California-based company, which was founded in 2004, was valued at $4 billion in February in a Series G funding round, led by venture capital firm Andreessen Horowitz, in which it raised $150 million.

Reuters reported in October that Roblox expects a public listing would double that valuation. The company confidentially submitted paperwork with the Securities and Exchange Commission to go public last month.

Roblox has filed for an IPO of $1 billion, a placeholder amount that is expected to change. It plans to list on the New York Stock Exchange under the symbol “RBLX”.

Goldman Sachs, Morgan Stanley, J.P. Morgan, Allen & Company, BofA Securities and RBC Capital markets are the underwriters for the IPO.

Reporting by Noor Zainab Hussain and Anirban Sen in Bengaluru and Joshua Franklin in New York; Editing by Aditya Soni, Arun Koyyur and Sam Holmes