Bill Baruch, Founder, Blue Line Capital NVIDIA Corporation NVDA-Q PARTIAL SELL Jun 21, 2024

It's a $3T company now, so you're not going to get the same returns as the last few years. Fundamentals are sound. Sold out for this year. There is a threat with A6 custom chips, which will have to be looked at for 2026 and beyond.

It's fine, but there are other ways to play the AI trend. You should diversify and have a basket of names. Early winners are typically infrastructure names like NVDA, but as the sector makes progress, other names will build on what the early movers provided.

Forefront of AI revolution, which is in early innings but a long game with fits and starts. Technological superiority. DeepSeek started the uncertainty, bringing into question the capital spend by hyperscalers. 

Big run, but earnings have moved along in step, so PEG is actually less expensive than before. PE has contracted to high 20s, earnings expected to grow at a similar cadence for the next 3 years. Pullback is buyable.

He believes in their earnings. AI chip spending will rise when NVDA rolls out a new chip next year. He's concerned about the death cross on its chart though. He needs to see the stock break out.

He targets $174 over 12 months. They make a ton of money and have tremendous margins, and are deploying that cash into robotics and Agentic AI. It's not only about their GPUs.

He believes in the new AI-powered industrial revolution where everything needs NVDA's GPUs. However, he sees shares coming down from here, and tonight's tariffs make it worse. Trades below 25x PE this year is cheap. Expect turbulence.

Is -19.29% for the first quarter of 2025. NVDA often has these hideous declines, but historically it often bounces back, though this drop is lower than others.

It broke to the downside. Because it's widely held, subject to a lot of volatility. Worth looking at around $90-95, as that's where a whole bunch of new dollars came in. Company is positive on its chip demand. This market throws baby out with bathwater; good chance to dip in on a good company.

His pick in the sector is TSM, which makes the chips for NVDA and the like. It's more diversified. Valuation is cheaper. Much clearer growth path going forward over next few years.

NVDA has fallen, but it's not a cheap stock. Factored into the share price is a huge growth expectation. Just because share price has fallen on a high flyer, that doesn't necessarily make it cheap.

Is -36% from highs. Own, don't trade it. Its AI isn't slowing, but investors in this market are selling everything AI. Buying into weakness has hurt, so step back and wait. Trades at only 21x PE and is the highest-quality company in the world. This stock will bounce back eventually.

Before you look at individual names, it's really important to understand the type of market we're in. What's happening in tech right now is not healthy. This name held up much longer than most of the index, but every stock in that index is broken. Great company, but don't have FOMO. Sector doesn't have tailwinds right now.