Hilary Kramer NVIDIA Corporation NVDA-Q COMMENT Oct 14, 2016

It's not only about chips, but networking and software. Expects new highs.

He loves the semis sector and this stock. It was upgraded today with an analyst raising the price target to $250, but he can't see NVDA shares double or triple.

Used to make 75% gross margins, but those have jumped to 90%. If it goes back to historic gross margins, even if sales continue, you'll see a huge degradation in profit. Sweet spot in terms of demand. Market thinks it can do no wrong. Worries that demand will abate or just normalize. Good news is baked in. Watch your position size.

The market cap topped $4 trillion today. It remains the king of the market, of tech, of AI. NVDA has created a revolution along the historic lines of the industrial revolution.

Probably a good place to write some calls against it, especially as average analyst price target is ~$175. Over next few days, analysts will probably up price targets due to H20 chips being allowed to China. It'll be king of the hill for at least 18 more months. Should definitely be in your top 5.

He sold the Aug.15 180 strike for $3.50 (20% annualized). Sold 25% of his position to rebalance to slightly overweight.

Likes technical superiority on AI chips.

Clear winner, because its chips make AI possible. There is some competition out there, but AVGO isn't one of them. Look for a good buying opportunity. 

He sees a parallel with INTC, which was a darling for many years. Not now. NVDA still has the market share; there are companies trying to catch up, but NVDA is still further ahead.