Opinions
Kim Bolton
NVIDIA Corporation
NVDA-Q
PAST TOP PICK
Jan 29, 2025
Stock price when the opinion was issued
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They report Aug. 27. AI will remain a tailwind for productivity and economic growth. However, he liked NVDA when it was below $90 last April, but not at twice the price. It costs too much now, though he likes the company. Technically, it needs to fall to at least $150, in the range of $125-150.
Premium contentNVIDIA Corporation is a leader in the semiconductor industry, renowned for its advances in graphics processing units (GPUs) and artificial intelligence (AI) infrastructure. Founded in 1993 and headquartered in Santa Clara, California, the company has consistently pushed the boundaries of technology, particularly in gaming graphics, AI, and data center markets. NVIDIA's technology is broadly adopted across multiple industries, including automotive, healthcare, and financial services, making it a key player in the technology sector. Social media mentions are up 11.1% in the past 24h.
Marries hardware and software and applying massive improvements to push product cycle forward. AI wouldn't exist if not for NVDA. Capex cycles do end, so it won't be the honeymoon period forever. But we're only in 4th-5th inning, much more growth to go on the capex front. Still underbuilt, undersupplied, AI still taking off.
Earnings are coming up, and he thinks they'll beat and raise again. Yield is 0.02%.
He'd still buy here. Always fireworks around quarterly earnings. It's run up, but fundamentals are outstanding. Clear technical superiority in AI chips. AI infrastructure buildout will keep order books full for a long time. Major beneficiary of AI capex.
No contest. This is the one to own.
They report later this week. In some ways, they will hit it out of the park, but how much sentiment is built into the stock already? NVDA has had a huge run, doubling since April. He suspects some people are over-invested and few who are under-invested. No, he won't buy it ahead of earnings, unless you're a daytrader looking at options.
Sure, there are concerns including their demand in China, and will the hyperscalers cut back on buying NVDA chips? You can't have gen-AI without NVDA chips. The new NVDA chips allow chatbots to reason--reasoning will be the holy grail of the AI generation. Selling ahead of this week's report is wrong.
She has taken profits many times. It reports earnings on Wednesday and she doesn't like to buy before earnings. Expectations are high and valuation is a sticking point. She sees an upside potential of 8% and analysts are changing to a hold. She still likes the AI theme. Be patient if buying.
The AI hype is way overextended, like the dotcom era. NVDA's market cap is bigger than all of France or the UK or Canada. Ridiculous. If you own it, trim and take profits. NVDA is only one component of AI with software being another. Why is NVDA soaring and the other components are lagging? Is a recipe for disaster.
(Stock split June 10, 2024) Still in the top 10 in his fund. Imagines that the Blackwell chips may take a bit of a back seat to the Hopper chips. His 12-month target is $175. Some Wall Street analysts have brought their targets down, but none are below $155, so still a very decent runway.
Still has a monopoly on the accelerator chips. Still a must-have in a portfolio. Companies involved in the large-language models, like META and GOOG, will continue to buy the Blackwell chips.