Why You Should Be Taking Profits On Tesla Supplier Nvidia’s Stock

By | May 13, 2016

Scalper1 News

Tesla ( TSLA ) chip supplier Nvidia ( NVDA ) is flying to a new all-time high in the stock market today on the heels of its estimate-beating quarterly report late Thursday. The marker of graphics chips for the auto and gaming markets said Q1 EPS jumped 38% while sales climbed 13%. Its guidance also was well above forecasts. Nvidia received several upgrades and price target hikes from analysts after the report. Shares gapped up 13.9% in giant volume, hitting a fresh high and clearing the 20% profit-taking zone. Nvidia initially cleared a cup-with-handle buy point of 33.16 about a month ago, and briefly pulled back to find support at the 50-day line ahead of the report. Meanwhile, Tesla is trading at two-month lows, about 27% below its 52-week high. Shares were up 0.8% intraday Friday. The stock got knocked from recent highs as analysts felt Tesla’s 2018 production target was too lofty. But Evercore defended the luxury electric carmaker Thursday, saying the production target is achievable. And Tesla partner Mobileye ( MBLY ), which makes advanced driver-assistance systems, said Thursday it has made deals with two unnamed automakers to create fully autonomous cars by 2019. Aside from Tesla, General Motors ( GM ), Ford ( F ) and Alphabet ( GOOGL )-owned Google are also working on self-driving technology. Mobileye breached its 50-day line last week after the company’s quarterly earnings report, though it beat views. The stock is looking to retake that level in Friday’s session, rising 2%. Shares are now about 42% below their high reached last August. Scalper1 News

Scalper1 News