Categories: Invest

Should you buy NVDA as institutional buyers take positions?

Nvidia Corporation (NASDAQ:NVDA) was one of the best-performing stocks of 2021. However, like all other stocks, it has taken a hit over the last few weeks.

In the past 3 weeks, NVidia is down by 20.53%.

Institutional buyers taking long positions on NVidia


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NVidia has been in the red for the better part of 2022. Interestingly, this has not stopped institutional investors from taking positions in this stock. The latest to take a long position on NVDA is Strategic Advisors LLC, a New York-based Investment Company.

Besides institutional money taking an interest in NVDA, the stock has a strong buy rating from analysts.

The growing bullish prospects around NVDA have a lot to do with rising chip prices that are expected to positively impact chipmakers like NVidia. The biggest boost came when the world’s largest chipmaker, TSMC announced that chip prices will increase by as much as 20% this year.

NVidia is also set to benefit from the growing adoption of its products in the crypto market, more specifically, the fast-growing Metaverse space. Experts believe that the Metaverse, which will require a massive amount of computing power, is set to benefit global chipmakers a big deal.

Trending towards $206.12 Support level

NVidia is down by 20% year-to-date. However, if the outlook for the semiconductor industry is anything to go by, then NVidia could be close to the bottom.

Source: TradingView

If NVIDIA holds above $206.12, it will be a signal to go long on NVDA. The next key target would be $345, which is its November 2021 high.

However, if the $206.12 support fails, it could be an indicator that bears are firmly in control. It would be a signal to sell, with a target of $195.

Summary

Institutional money flowing into NVidia as the semiconductor market looks promising in 2022. NVDIA shares have dropped by 20% year-to-date. However, if institutional money keeps flowing in, then the share could rally in the course of the year.

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