NVIDIA’s bull is back

I bought my first NVIDIA shares about a half year ago and one of the things I learned during that time is that this is a very volatile stock. Out of all the stocks I own or have owned NVIDIA makes the biggest jumps and dumps. In March-April the stock traded in the $18-$20 range, in May-June it hovered in the $20-$25 range and last month it suddenly dropped more than 30% in one day when the firm gave a earnings warning and announced a $200 million charge for faulty notebook chips.

Since early July to mid-August the stock traded in the $11-$12 range and it reached a bottom of $10.55 a couple of weeks ago. NVIDIA announced its second quarter financial results on August 12 and things turned out to be less bad than expected. The firm admitted they’ve made some mistakes and also announced they have reserved another $1 billion for their stock buyback program.

Since that day NVDA has gone up sharply, the stock didn’t care about the rest of the market and went up almost 30% – from $11 to $14 in a bit more than a week. The downward trend has been broken abruptly and NVDA is starting to look very bullish.

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