According to BTIG, Nvidia’s breakneck rise is breaking new ground in stock chart analysis that not even the dot-com bubble managed to achieve. The chip stock has traded above its 200-day moving average longer than any other big U.S. company in at least the past three decades, strategist Jonathan Krinsky said in a client note Sunday. “Nvidia has recently traded roughly 100% above its 200-day moving average. The largest spread a U.S. company has traded above its 200-day moving average since 1990, when it was the largest company, was 80% in November 2010.” [Cisco] It hit an all-time high in March 2000. In other words, NVDA is in a league of its own,” the note said. Drawing another similarity to the dot-com bubble, Krinsky said Cisco also briefly overtook Microsoft in market cap in March 2000. Last week, Nvidia did the same. Nvidia’s stock is up more than 150% year to date, and despite Friday’s selloff, its market cap is still over $3 trillion. Nvidia bulls point to the company’s rapid revenue growth and healthy cash flows and profits as justification for the upside, but the company’s size and the speed at which it’s moving have many Wall Street pros worried. “While we fully acknowledge that the fundamentals are very different this time around, NVDA is up +4,280% over the past five years, while CSCO is up +4,460% over the five years to its peak,” the BTIG note said. —CNBC’s Michael Bloom contributed reporting.
