NVDA stock looks like it will be heading lower for the next few days on a big bearish engulfing candlestick pattern on November 9, 2020.
Nvidia (NVDA) and Hyundai Motor (HYMTF) announced that the automaker’s entire lineup of Hyundai, Kia, and Genesis models would come standard with NVIDIA DRIVE in-vehicle infotainment systems starting in 2022. These fleets will feature a rich, software-defined AI user experience that is perpetually updateable from entry-level to premium vehicles. Recent breakthroughs in AI and accelerated computing have opened the door for next-generation cars and trucks to benefit from new functionality, capabilities, and enhanced safety features added after the car is purchased. With a centralized, software-defined computing architecture, future vehicles can always have the latest AI cockpit features. Paul Choo, senior vice president of the Electronics Tech Unit at Hyundai Motor Group, said: “At Hyundai Motor Group, we’re committed to delivering greater value, safety, functionality, and enjoyment over the lifetime of the car. The NVIDIA DRIVE platform is proven – it is scalable, energy-efficient, and has the performance to support our next generation of software-defined vehicles.”
It looks like the sell-off has to do with Nvidia’s valuation more than anything. The stock is currently trading at a $327.12 billion market cap, but the company did $13 billion in sales last year. That gives the stock a poor P/S of 25.04.
NVDA stock also trades at a P/E of 99.97, which suggests that it is expensive.
We think the stock continues to pullback over the next week as short-sellers hit the stock on valuation concerns.