Hap (Robert) Sneddon FCSI NVIDIA Corporation NVDA-Q PARTIAL BUY Apr 04, 2025

What we heard from CEO Jensen Huang at the current tech conference is what we've heard in the several past quarters: there's insatiable demand for AI, and NVDA is the middle of this and it's good for the company. We heard nothing new. He's surprised shares are not even higher today (they are bouncing). The modest share increase isn't tied to NVDA, but tied to the fact that the market has been oversold. That said, will this bounce continued into the close and beyond? The market is in no man's land.

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.

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.