NVIDIA Corporation

NVIDIA Corporation (NASDAQ: NVDA) focuses on designing graphics processing units to improve the computing experience. It manufactures semiconductor chips that are used in gaming, data centers, and automotive infotainment systems.

Key Highlights

• The company reported YoY growth of 83.80% in total revenue to USD 5.66 billion in Q1FY22 (ended May 02, 2021) compared to USD 3.08 billion in Q1FY21 (April 26, 2020), primarily due to the expansion of its Data Center business.
• Net income for Q1FY22 was USD 1.91 billion, up 108.51% from USD 917 million in Q1FY21.
• NVDA estimates its Q2FY22 revenue to be USD 6.30 billion (+/- 2%), with GAAP operating expenses of USD 1.76 billion.
• On August 10, 2021, NVDA launched an expansion of NVIDIA Omniverse, the first-ever simulation platform delivering the foundation of the metaverse via integrations with Blender and Adobe.
• On May 21, 2021, the company declared a 4:1 common stock split payable as a stock dividend. Additional shares were distributed on July 19, 2021.
• Significantly high ROE of 10.7% in Q1FY22 vs. the industry median of 4.5%.
• Stock is currently trading above its crucial long-term as well as short-term support levels of 50-day and 200-day SMA levels, a bullish indicator.
• Stock is currently leaning towards the higher band of the 52-week range of USD 107.96 to USD 208.75.

Technical Price Chart (as of August 10, 2021). Analysis by Kalkine

Conclusion: NVDA's stock price has increased 79.18% in the past twelve months, and its RSI Index is 55.66. Considering the significant uptick in the stock price, the surge in both top and bottom-line, new product launches, technical indications, and associated risks, we recommend an "Expensive" rating on the stock at the current price of USD 200.03, up 1.44% as of August 10, 2021, 1:05 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.

Citigroup Inc.

Citigroup Inc. (NYSE: C) is a multinational banking company, which caters to 200 million customer accounts in over 160 countries and jurisdictions.

Key Highlights

• The company reported an 11.60% decline in total revenue to USD 17.47 billion in Q2FY21 (ended June 30, 2021) compared to USD 19.77 billion in Q2FY20 due to the normalization of market activity in the Fixed Income Markets, lower average card loans and lower interest rates.
• Net income for Q2FY21 was USD 6.19 billion, 5.86x USD 1.06 billion in Q2FY20, resulting from a lower cost of credit.
• C exited the quarter with total deposits of USD 1,310.28 billion, compared to USD 1,300.98 as of March 31, 2021.
• On July 22, 2021, C declared a common stock dividend of USD 0.51 per share payable on August 27, 2021, to shareholders of record on August 02, 2021.
• The company redeemed its USD 1.75 billion principal amount of 3.4% notes due 2021 and USD 750.00 million principal amount of floating rate notes due 2021 on June 23, 2021.
• Increasing efficiency ratio of 64.4% in Q2FY21 vs. 54.3% in Q1FY21, a warning sign.
• Stock is currently trading above its crucial long-term as well as short-term support levels of 50-day and 200-day SMA levels, a bullish indicator.
• Stock is currently leaning towards the higher band of the 52-week range of USD 40.49 to USD 80.29.

Technical Price Chart (as of August 10, 2021). Analysis by Kalkine

Conclusion: C's stock price has increased 15.97% in the past six months, and its RSI Index is 65.65. Considering the uptick in the stock price, the growth bottom-line and total deposits, technical indications, and current valuation, we recommend a "Watch" rating on the stock at the current price of USD 73.20, up 2.34% as of August 10, 2021, 1:29 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.  

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