Buying NVIDIA with a target of 130.0

After the March correction, NVIDIA's market cap reached a price level where it started to look attractive to buy. Although the company is a growth leader not only for the broad market but also for the advanced tech sector, the price/earnings ratio is not far from the average. For example, for the tech sector, the average P/E multiple is 35, but for NVIDIA it is now just 37, which shows that the company's market price is almost fair.

The company's actual sales in its most recently reported quarter exceeded expectations by 3.23%, while earnings per share (EPS) beat estimates by 4.97%. EPS growth for the year is expected to be 51.96%. Meanwhile, the average annual EPS growth rate for the tech sector is 11%.

NVIDIA has a record 119% return on equity and 81% return on investment. Gross profit is 75% and net profit is 56%. All of these estimates are well ahead of the tech sector average. 

The company also continues to maintain a low level of debt. Its total debt-to-equity ratio is 0.13, while the sector average is 0.46. This means that NVIDIA has 3.5 times less debt than many other tech companies.

The current short sales volume is 1.03%. In comparison, the sector average for short positions is 2.01%. In other words, NVIDIA stock is almost half as exposed to selling as other companies in the sector.

The overall recommendation is to buy NVIDIA from the current level.

Profits should be taken at the level of 130.0. A Stop loss could be set at the level of 95.0. 

The volume of the opened position should be set in such a way that the value of a possible loss, fixed with the help of a protective Stop loss order, is no more than 1% of your deposit funds.