NVIDIA Stock Through The Lens Of Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And NVIDIA has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the stock is trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares the last year.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the big money signals NVDA has made the last year.

The last few days have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In 2021, the stock has attracted 19 Big Money buy signals. And the only sell signals were back in March during a growth scare. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

  • YTD outperformance vs. technology ETF (+30% vs. XLK)

Outperformance is huge for leading stocks.

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, NVIDIA has been growing revenues and earnings rapidly. Take a look:

  • 3-year sales growth rate (+22.17%)

  • 3-year earnings growth rate (+18.04%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, NVIDIA has been a top-rated stock at my research firm, MAPsignals, many times before. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

NVDA has a lot of qualities that are attracting Big Money. And since it first appeared on this report back on 2/17/2015, it’s up over 3700%! The blue bars below show the 60 times that NVDIA was a top pick:

Source: www.mapsignals.com

Looking at that chart above, that’s what I call the stairway to heaven! I wouldn’t be surprised if NVIDIA makes additional appearances in the years to come. Let’s tie this all together.

NVIDIA continues to fire on all cylinders technically alongside growing sales and earnings. I like the long-term story of the stock.

The Bottom Line

The NVIDIA rally could have further to go. Big money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.

Disclosure: the author holds no position in NVDA at the time of publication.

Learn more about the MAPsignals process here.



For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire


William Murphy

Related post