NVIDIA (NVDA) and Plug Power (PLUG) Picked by Analysts as High Risk, High Reward Stocks PlatoBlockchain Data Intelligence. Vertical Search. Ai.

NVIDIA (NVDA) and Plug Power (PLUG) Picked by Analysts as High Risk, High Reward Stocks

Earlier, retail investors have favored meme stocks like GameStop and AMC, however, now NVIDIA (NVDA) and Plug Power (PLUG) are on the radar of analysts.

American technology multinational corporation NVIDIA Corporation (NASDAQ: NVDA), and Plug Power Inc (NASDAQ: PLUG), a New York-based firm engaged in the development of hydrogen fuel cell systems have been picked by two analysts as a high risk, high reward stocks. In an interview with CNBC’s “Trading Nation,” Danielle Shay, the Director of Options at Simpler Trading, and Craig Johnson, Chief Market Technician at Piper Sandler Companies (NYSE: PIPR) both favored NVIDIA and Plug Power respectively.

There has been a boost in retail investment activities this year as the Reddit chatroom sprung into fame through a short squeeze saga that has benefitted some heavily shorted names like GameStop Corp (NYSE: GME), and AMC Entertainment Holdings Inc (NYSE: AMC) amongst others. With AMC surging as much as 2,000% in the year-to-date period. At this pace, retail investors may be looking at alternatives as these stocks are at their peak for now, and corrections cannot be ruled out.

Justifying NVIDIA and Plug Power Picks

The choice of NVIDIA is tagged a high-risk pick as it is currently trading at an All-Time High (ATH). However, its proposed stock split may be a trigger for impressive growth in the coming weeks.

“It is at the all-time highs and normally I would never come here and say, ‘Hey guys, look at Nvidia, it’s at all-time highs, it’s a great time to buy it.’ But the reason why I like this and I put it in that momentum retail-trader category is because of the stock split coming up,” Shay said. “Last year, what we saw with Apple and Tesla both when their stock splits were announced, we had a massive rally that was largely due to the retail crowd.”

The stock split, approved back in May is set to kick off on July 20, and Shay believes the company has the right fundamentals to back the imminent upsurge in valuation.

She noted that NVIDIA is “a solid company, great fundamentals. Technicals, it’s at the highs, but I’m looking at this to go potentially up to $750, maybe even $800, because if you look at it right now, it has this massive momentum because of the stock split.”

On Johnson’s part, Plug Power is a high risk as the industries it operates in are generally seeing their best performances, making any investment seemingly uncalculated.

“This is a stock that, coming off the March lows, has risen almost 3,000%. It’s corrected 75% off the highs we had seen just a couple of months ago in February, and now technically, we’ve just reversed the downtrend … and moved above our 50- and 200-day moving averages,” Johnson said.

The analysts project a 125% upside for Plug Power and leave the possibility of a retracement at 29%.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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