NVIDIA Corp (NASDAQ:NVDA): A CAN SLIM Candidate

NVIDIA Corp (NASDAQ:NVDA) is a leading designer of graphics processors and AI computing solutions. The CAN SLIM investing system, developed by William O'Neil, combines fundamental and technical analysis to identify high-growth stocks with strong momentum. NVIDIA's financials and market performance suggest it aligns well with several CAN SLIM criteria.

How NVIDIA Meets CAN SLIM Criteria

C – Current Earnings & Sales Growth

NVIDIA reports a 72.5% year-over-year EPS growth and 77.9% revenue growth in its latest quarter, far exceeding the CAN SLIM minimum of 20-25%. This acceleration in earnings and sales indicates strong demand for its AI and data center products.

A – Annual Earnings Growth

The company’s 3-year EPS growth stands at 88.8%, well above the 25% threshold. NVIDIA’s Return on Equity (ROE) of 91.9% also surpasses the recommended 10%, reflecting efficient capital use.

N – New Products & Market Leadership

NVIDIA continues to innovate in AI, gaming, and autonomous driving. Its GPUs are critical for AI training, positioning it as a leader in a rapidly growing industry.

S – Supply & Demand

With a Debt/Equity ratio of 0.11, NVIDIA maintains a strong balance sheet. Its stock remains highly liquid, with average daily trading volume exceeding 300 million shares.

L – Market Leadership

NVIDIA’s Relative Strength (CRS) of 81.2 means it outperforms 81% of stocks, fitting CAN SLIM’s preference for market leaders.

I – Institutional Sponsorship

Institutional ownership stands at 67%, within the ideal range, suggesting strong interest from large investors without excessive concentration.

M – Market Direction

While NVIDIA’s long-term trend is negative, its strong fundamentals could make it a candidate for a rebound if market conditions improve.

Fundamental & Technical Overview

• Fundamental Rating: 8/10 – NVIDIA excels in profitability and growth, with high margins and strong cash flow. (Full FA Report)
• Technical Rating: 2/10 – The stock faces resistance near $114-$115, with both short and long-term trends negative. (Full TA Report)

Conclusion

NVIDIA meets many CAN SLIM criteria, particularly in earnings growth, profitability, and market leadership. However, current technical weakness suggests waiting for a better entry point.

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