Ran NVDA through an AI scoring tool I built (6 weighted signals, end-of-day data). landed at 81/100 which is strong buy. I figured i'd share the breakdown.
the stuff that looks great:
\- P/I of 1.4x. bottom 10% of its own 59-period history (median is 2.3). priced cheap relative to its own earnings power
\- LTM FCF of 119.08B at a 47% margin. nearly half of every dollar of revenue is converting to free cash
\- most recent quarter FCF was 48.59B which is above the prior 3-quarter average. trend is still accelerating
\- revenue grew 70.7% YoY to 253.49B
\- analyst consensus target is $278.03 (61 analysts) so \~24% upside baked in
\- news sentiment +0.26 across 50 articles
the one flag:
\- monthly RSI at 73.1. over 70 is overbought, and on a monthly chart that usually means real pullback risk not just noise
the weird part is the valuation. you'd think a name up this much would be expensive but the P/I is actually cheap vs its own history because earnings have outrun the price. business is generating cash faster than the multiple is expanding.
for me this reads buy, just not all at once. tool's plan is 50% starter here, 30% on a \~10% dip near 201, 20% on a confirmed close above 234. hard stop around 178.
momentum is really the only risk. next earnings is August so if there's a dip between now and then the entry gets better.
not financial advice obviously, just sharing what the tool said.
anyone here actually trimming NVDA at these levels or still adding?