Nvidia Corp. (NASDAQ: NVDA) has been on a tear in December. The stock is up 42.96% in the last month, including another 3.61% bump today on higher than average volume. The shares are currently trading hands for $18.67.
So is this a top or is NVDA going to kick it into overdrive in 2010? Well, one bull is Eric Bleeker over at the Motley Fool who has recommended Nvidia (NVDA) as “The Best Stock of 2010.”
NVIDIA Corporation (NVIDIA) is a provider of visual computing technologies and the inventor of the graphic processing unit (GPU [FREE Stock Trend Analysis]), a processor, which generates graphics on workstations, personal computers, game consoles and mobile devices.
Bleeker believes that a number of catalysts could make NVDA a good play for 2010. Among these are a rebound in PC sales and the release of Windows 7. Research analysts at S&P have a 3 (out of 5) star rating on the stock and view it as a high risk stock.
S&P’s research report states, “Our risk assessment reflects the cyclicality of the semiconductor industry and of demand trends for electronics goods that benefit from advanced visual displays, and revenue volatility resulting from wins and losses of deals with big accounts.”
In other words, this stock is no sure thing, but the price action in the name is extremely bullish. If you are interested in taking on some risk, wait for a pullback to make your entry into NVDA.
source: benzinga.com
