As 2021 gets underway, Nvidia (NVDA) is exploring new era of collaboration and simulation. And NVDA stock is trying to tap into a new buy zone on the way to an all-time high.
The AI, machine learning and graphics leader has opened up to developers the beta version of Nvidia Omniverse. Nvidia designed the platform to act as a hub for real-time simulation and collaboration for 3D production pipelines based on Pixar’s Universal Scene Description and Nvidia RTX.
Nvidia Omniverse is an open platform built for virtual collaboration and real-time photorealistic simulation. Through creator, designer, and engineering visual workflows, teams connect design tools, assets, and projects for collaborative iteration in a virtual world.
The Silicon Valley-based artificial intelligence and machine learning pioneer has also tied up with Amazon.com (AMZN) to launch a storefront in AWS Marketplace. Through partnership with Amazon Web Services, Nvidia aims to speed up AI deployments in health care, robotics, conversational AI and other fields.
NVDA Stock Forms Base After 340% Rise
From a low it hit in June 2019, NVDA stock catapulted 340% before running into resistance just under the 600 mark. The stock then pulled back to form its current flat base.
Nvidia stock continues to trade around its 10-week moving average. Amazon stock is showing similar action.
As its relative strength line looks to begin trending higher, NVDA stock is showing a 587.76 buy point.
In addition to being a later-stage base, one sign of weakness is how most of the base has formed below the 10-week line. Although the stock market headed lower on the first day of trading in 2021, see if NVDA stock can find support and forge ahead.
Fundamentals remain strong. Over the past three quarters, Nvidia has generated average earnings growth of 81%. Sales growth has ranged from 39% to 57% over the last four reports.
Consensus analyst estimates call for 68% growth in EPS in its current fiscal year, followed by a 19% increase in fiscal 2022.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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