Even after NVIDIA
stumbled through earnings
season, the stock still appears to be going strong. From a fundamental perspective, NVIDIA
has pivoted towards selling their GPUs to data centers and companies involved with AI development. The new "Ampere" architecture is designed specifically for this purpose. If you weren't aware, NVIDIA's computer gaming chips are versatile enough to run Keras scripts of ANN (Artificial Neural Networks) with the CUDA
Toolkit on your average PC
. The pivot
to AI will be an excellent strategic move for the company if there is any drop-off in gaming after the Covid-19 pandemic is fully under control.
The company is very well positioned to pay off any immediate debts due by looking at the acid test or Quick Ratio standing at 9.70 (a Quick Ratio of 1.00 is considered to be sufficient to pay debt without selling any inventory or need additional financing). From a technical perspective, the price is above all three Exponential Moving Averages of 10, 20, and 50. In addition, there are no cross-unders of the EMA
10, 20, or 50. These are both very bullish
signs of a continuing upward trend.
Long 50 shares NVDA
purchased at 319.12.