Nvidia (NASDAQ:) stock is in a “league of its own,” BTIG analysts said in a note issued Sunday.
The chipmaker’s shares recently traded nearly 100% above its 200-day moving average (DMA). According to BTIG, this is unprecedented, as the largest spread any US company has ever traded above the 200 DMA while serving as the largest company was 80%, achieved by Cisco (NASDAQ:) in March 2000, marking its highest Absolutely great.
Just like NVDA this time, Cisco also briefly surpassed Microsoft (NASDAQ:) in March 2000 to become the most valuable company in the world.
“Although we are fully aware that the fundamentals are much different this time around, in the past five years, NVDA has gained +4,280% compared to CSCO’s +4,460% gain in the five years prior to its peak,” BTIG analysts highlighted.
“Over the past 18 months, NVDA has gained +827% which is actually double CSCO’s 18-month gain through 2000,” they continued.
More broadly, there have been significant inflows into large-cap technology and growth funds, suggesting potential froth in the market after the latest wave, BTIG noted.
Looking to the future, the investment firm said it remains concerned about the potential departure of several leaders in the near term yet. However, they also note that within the Magnificent 7 group, there is some dispersion, with stocks like Amazon (NASDAQ:) and Alphabet (NASDAQ:) still looking constructive and not overly extended.
“If the SPX is to avoid a deeper pullback in July, the bulls need to see the rotation continue below the surface,” the analysts concluded.
