Opinions
Jason Snipe, CIO, Odyssey Capital Advisors
NVIDIA Corporation
NVDA-Q
BUY
Aug 28, 2024
Stock price when the opinion was issued
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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.
Premium contentPremium contentProbably 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.
(Analysts’ price target is $175.00)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.
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Obviously, there will be a beat and raise, but it's about the magnitude of that beat and raise and guidance. What will they say about capex spending by other companies and the ecosystem. MSFT already announced a significant capex for 2025 of $80 billion. The highway leads to Nvidia.