Strong Performance Today In Technology From NVIDIA Corporation (NVDA)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NVIDIA Corporation ( NVDA) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day down 0.3%. By the end of trading, NVIDIA Corporation rose 32 cents (2.5%) to $13.09 on heavy volume. Throughout the day, 19.1 million shares of NVIDIA Corporation exchanged hands as compared to its average daily volume of 10.3 million shares. The stock ranged in a price between $12.72-$13.23 after having opened the day at $12.83 as compared to the previous trading day's close of $12.77. Other companies within the Technology sector that increased today were: Elephant Talk Communications ( ETAK), up 22.7%, Dialogic ( DLGC), up 12.8%, Bankrate ( RATE), up 12.6%, and Mattson Technology ( MTSN), up 10.6%.
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NVIDIA Corporation, a visual computing company, develops graphics chips for use in personal computers (PC), mobile devices, and supercomputers. The company operates through two segments, GPU and Tegra Processors. NVIDIA Corporation has a market cap of $7.93 billion and is part of the electronics industry. The company has a P/E ratio of 14.3, below the S&P 500 P/E ratio of 17.7. Shares are up 4.6% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate NVIDIA Corporation a buy, two analysts rate it a sell, and 18 rate it a hold.

TheStreet Ratings rates NVIDIA Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Deltathree ( DDDC), down 30%, DynaVox ( DVOX), down 28.6%, WPCS International ( WPCS), down 15.9%, and Alvarion ( ALVR), down 15.6%, were all laggards within the technology sector with Infosys ( INFY) being today's technology sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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