Nvidia (NVDA, $399.93) will power Alphabet's Google (GOOGL, $1,505.00) cloud computing services

On Tuesday, Nvidia and Google   announced that the Google Cloud Platform (GCP) is launching cloud computing instances powered by Nvidia’s new A100 GPU.

 The  cloud computing instances are known as the A2 VM family, and the most powerful of these instances provides access to 16 A100 GPUs, as well as 1.3TB of system memory.  

According to Google, the A100 will soon support its Kubernetes Engine service, and its Cloud AI Platform.

Nvidia has claimed that the A100 substantially outperforms its last flagship server GPU (the Tesla V100, launched in mid-2017) when it comes to running popular AI-related workload.

Tickeron's AI-powered scorecard rates NVDA a STRONG BUY.

NVDA's Aroon indicator reaches into Uptrend on July 06, 2020

For traders, this could mean going long on the ticker or exploring call options in the next month. In 342 of 398 cases where NVDA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 86%.

Current price $399.93 is above $362.74 the highest resistance line found by A.I. Throughout the month of 06/03/20 - 07/06/20, the price experienced a +12% Uptrend. During the week of 06/26/20 - 07/06/20, the stock enjoyed a +7% Uptrend growth.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator exceeded the 0 level on June 25, 2020. Traders may consider buying the ticker or exploring call options. In 60 of 74 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 81%.

The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where NVDA's MACD histogram became positive, in 42 of 49 cases, the price rose further within the following month. The odds of a continued Uptrend are 86%.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NVDA advanced for three days, in 294 of 346 cases, the price rose further within the following month. The odds of a continued Uptrend are 85%.

Bearish Trend Analysis

The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 35 of 60 cases where NVDA's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 58%.

The Stochastic Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.

The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 36 of 52 cases where NVDA's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 69%.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 86%. During the last month, the daily ratio of advancing to declining volumes was 1.96 to 1.

The Tickeron Price Growth Rating for this company is 2 (best 1 - 100 worst), indicating outstanding price growth. NVDA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is 7 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 7 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 62, placing this stock better than average.

The Tickeron SMR rating for this company is 26 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Valuation Rating of 99 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NVDA's P/B Ratio (18.48) is very high in comparison to the industry average of (3.61). P/E Ratio (73.50) is within average values for comparable stocks, (93.18). NVDA's Projected Growth (PEG Ratio) (174.12) is very high in comparison to the industry average of (7.00). Dividend Yield (0.26) settles around the average of (0.56) among similar stocks. NVDA's P/S Ratio (15.29) is very high in comparison to the industry average of (3.35).