AI stock NVIDIA (NASDAQ:NVDA), South America stock MercadoLibre (NASDAQ:MELI) and Dividend King Dover in sight!
h3 AI stock NVIDIA after the quarterly figures/h3
NVIDIA reported the new quarterly figures after hours on Wednesday and rose a full 14% the following day. Although sales and earnings were below the previous year’s values, this was not a surprise in the cyclical semiconductor market – quite the contrary, because NVIDIA managed to exceed investor expectations. The statements by the CEO and other people from management, who see great potential in the field of AI, were particularly interesting. I have already gone into more detail about this in the recommendation of the week above.
Due to such positive reports, however, the NVIDIA share does not immediately become a no-brainer buy, because the share has already doubled since its low. As soon as the positive news starts to come in (like now), part of the “party” is already over, as always. It is therefore all the more important that investors learn to think against the crowd. That doesn’t mean that every stock that is down is worth buying – but good stocks with long-term stable developments can usually be picked up well in corrections. At these attractive times, the general public tends to still have a negative and reluctant attitude towards stock purchases.
NVIDIA broke the short-term downtrend in November 2022 and delivered the first positive signal back then. A medium-term very strong bottom was completed with the breakout above around USD 190 and since then the trend has been very dynamic. There are a few strong resistance zones on the way to the all-time high, such as around USD 255. Corrections and regular resets are to be planned for here.
You can find out whether NVIDIA shares are worth buying here.
h3 MercadoLibre with their monopoly in South America/h3
There are comparatively few stocks from South America, but one of them is MercadoLibre – the market power par excellence in e-commerce, but also in other sectors. MercadoLibre brings together the offerings of Amazon (NASDAQ:AMZN), Shopify (NYSE:SHOP), PayPal (NASDAQ:PYPL) and a few other western companies in South America. Although the new quarterly figures have shown that growth is slowing down here too, it is still at a very high level. In Q4 2022, sales in Brazil increased by 36%, in Argentina by 50% and in Mexico by 55% compared to the same quarter of the previous year.
With the new price dynamics on Friday, the correction of the last few weeks could be over again, which is completely healthy in the current extent. Only when the breakout to a new high above USD 1,250.48 is successful is the correction finally over. If the breakout succeeds sustainably above USD 1,300, then the next strong resistance zone is in the area around USD 1,550.
Here’s a full analysis on this exciting stock.
h3 When will Dividend King Dover stabilize?/h3
Dividend king Dover (NYSE:DOV) also completed a medium-term bottom formation some time ago. In the last few weeks, the share has now corrected itself, which is no longer a concern, but rather can be seen as an opportunity. It is now important to ensure that the level of USD 140 to USD 145 is defended by the buyers and not fallen below for a sustained period.
Written by:
Jan Fuhrman