How High Will Tesla/Apple Supplier Nvidia Go? Up 34% In 2 Months
Loading the player… Nvidia ( NVDA ) — chip supplier for Apple ( AAPL ) and Tesla Motors ( TSLA ) — has been on a huge run lately, gaining more than 30% in the past two months. But how much higher can the top-rated stock go? While Nvidia is probably best known for being a Tesla partner, it has also supplied graphics chips for Apple computers and is involved in the budding virtual reality market. Jefferies is bullish on the stock and said last week that Nvidia is just starting to benefit from trends in the auto, data center, PC gaming and VR markets. The analyst believes the company can more than triple its annual EPS in three years. Nvidia broke out of a cup-with-handle base about eight weeks ago and pulled back to find support at the 50-day line. It then surged to a new all-time high and profit-taking zone after its view-topping quarterly report last week and has continued higher since. It’s now up about 34% from the buy point and rose 1.8% Friday. Top-Rated Peers Performing Well Nvidia has a highest-possible IBD Composite Rating of 99. Two of its highly rated chip peers have also been performing particularly well as of late: Silicon Motion ( SIMO ) and MaxLinear ( MXL ). Silicon Motion broke out of a big cup-with-handle base in March and is now trading in profit-taking territory and at all-time highs. Its stock climbed 3.8% on the stock market Friday. MaxLinear broke out of a consolidation base last week and is trading in buy range. It rose 1.7% Friday.