Technology Stocks led the markets higher last week, with the Nasdaq 100 gaining +4.15%. That was 2% higher than the S&P 500, while the industrials and small caps lagged. Most of the FANG stocks moved higher, with the exception of Facebook (FB), which is mired in news and controversy again. Update: NVidia (NVDA) was in the news after hours…………
Summary
- Nvidia updates Tuesday, March 19, 2019
- NVDA, Softbank, LG Uplus deploying gaming servers in Japan/Korea
- NVDA teams with Israel-based Cognata developing self-driving autos
- NVDA teams with SAS – deep learning and artificial intelligence
- NVDA partners with Amazon Web Services – Cloud Compute (EC2)
- “Nvidia (NVDA) CEO Jensen Huang made plenty of hardware and software announcements during a 160-minute keynote talk at the company’s annual developer’s conference on Monday after the market close. Huang also disclosed some new partnerships and shared a handful of impressive stats about its developer base and number of gaming customers.” Source – The Street
Nvidia – Mellanox Purchase
Nvidia’s (NVDA) recent $6.9 billion purchase of Mellanox (MLNX) is another step in the culmination of plans to enter the profitable datacenter market, according to comments from CEO Jen-Hsun Huang.
The corporate data centers continue to expand in importance, so Nvidia’s move appeared to be a defensive move. It was also a strategic move to block Intel (INTC) from acquiring (MLNX), Wall Street analysts said last Tuesday.
NVDA – Chart
NVDA appears to be breaking out of its 4-month base, ending the 3 month slide that started in late September, when tech led the move lower.
Volume is increasing. MACD is above its signal line and rising. And, RSI is above 50 and trending bullish. As long as the stock continues taking out the previous daily highs on a regular basis, we will continue adding to our position.
Our 1st target 195.00 (+/-) a 19% gain from the recent breakout zone. This coincides with the consolidation zone back in October, before the stock moved to its final December lows.
Our 2nd target, the 200d, is a bit more ambitious, giving traders/investors a gain of 28.15% from the 163.70 breakout.
The tech-heavy Nasdaq-100 led the markets higher last week, gaining +4.15%. This strength directed our focus towards the semiconductor group. We are anticipating good things for NVDA in the coming weeks, as the Mellanox acquisition gains more attention from the financial media.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we trade NVDA and other semiconductors this week. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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