<p>NVIDIA (NASDAQ: NVDA) has become another opportunity for “blood on the streets”. Since the February high of $ 316.13, the NVDA stock crumbled to $ 209, where it has now become an oversold bargain at 200-day support.
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It has also been aggressively oversold on relative strength (RSI), MACD and Williams% R. With lots of other half catalysts, I strongly believe that NVDA will fill its bearish gap of $ 300 in the short term.
Granted, there may be more semiconductor layer pain ahead. However, Bernstein analyst Stacy Rasgon says investors should consider buying the dip.
“Probably the situation (how long it will last) will ultimately be temporary,” he wrote. “Total demand will not (in the long run) deteriorate permanently. Therefore, we could see the disadvantage (eventually) provide selective buying opportunities, says Rasgon
He added that Nvidia is attractive as it is likely to launch new products this year.
Better, new game consoles from Microsoft (NASDAQ: MSFT) and Sony Corporation (NYSE: SNE) will be launched later this year and serve as an important catalyst.
That’s just part of the reason Bank of America Vivek Arya just repeated a buy rating on the NVDA stock with a price target of $ 300. Rasgon also said the company could benefit from a PC GPU upgrade cycle similar to what was seen after the launch of the previous generation consoles, as highlighted by Benzinga contributor Shanthi Rexaline.
And while the company lowered its revenue guidance to $ 2.2 billion, plus or minus 2%, it seems like the latest withdrawal is priced the most of it.
Other long-term catalysts for NVDA shares
As for Nvidia, ignore the noise and focus on the long-term possibility thanks to games, data center resources, autonomous vehicles and even artificial intelligence.
First, it will benefit from the new consoles coming out later this year. As consoles and games get better, more processing power is required. This means that Nvidia will need to develop even more chips. Better, according to CFO Collette Kress, “games are booming.”
In addition, it takes advantage of several new trends in e-sports, new games coming out that support NVIDIA’s RTX beam tracking technology and the strong demand for laptop games, as highlighted by Motley Fool contributor John Ballard.
Data center revenues are still increasing as well. In fact, revenues increased by 43% compared to the previous year due to higher demand for AI workload chips. Some of the best companies that use their chips include Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT) and Domino’s (NYSE: DPZ).
The conclusion of the Nvidia share
Again, when it comes to NVDA stocks, ignore the noise. Focus on the long-term opportunity and the fact that the stock is wild and temporarily oversold. When the smoke has disappeared with the coronavirus history, I strongly believe that the NVDA stock will fill its bearish gap of $ 300.
Of course, a lot of patience is required.
Ian Cooper, an InvestorPlace.com contributor, has been analyzing shares and options for web-based advisory services since 1999. At the time of writing, Ian Cooper had no position in any of the above securities.