NVIDIA Corporation (NVDA)

The great thing about talking to him is that he's very detached from the fundamentals. Making higher highs and higher lows. It based and that was healthy, as it went parabolic for much of 2023 and 2024. Looking at the angle of ascent from late 2023 onward, it was crazy. Now breaking out. Can't see a problem owning at this point, a good story.

Today's the big day. Short-dated options from market makers show NVDA trading about 8-8.5% on either side of the close at end of day. A lot of the market makers will have to cover on their options, probably more so to the downside. 

Last time it reported in August, it was a great report with OK guidance, but over the next couple of days it traded from $125 all the way down to $95. You're going to have some opportunities to get in. For him, you have to own it, must be one of your top picks.

Right now, the largest market-cap company in the world, about $3.6T. If you extrapolate on its growth rate which is conservatively in the low 20%s, then market cap by 2029 could be anywhere between $5.6-6.3T. And that will be reflected in the stock. We can say this because it's really cornered the market on data centre accelerator chips; no one is even close. 

Now at $146, so runway is a bit short. However, it owns 88% of the accelerator chips in data centres, which are the big buyers out there. Some hyperscalers are starting to build in-house chips which will eat into its business, but at the same time governments are ramping up. Plus, there's still the gaming side, which contributes about $10B a year. Automotive chips too -- right now $3B, but estimated to be in excess of $20B by 2029. Lots of horses in the race.

They have the most advanced chip on the market that nobody can replace.

It boasts five straight quarters of triple-digit earnings growth. The stock continues to strengthen. They last guided $32 billion on data centre revenue vs. the street's $31.7 billon. If they come in above their guidance, this stock should be okay. But remember that NVDA has a history of sharp drawdowns even when they report a beat. Last August, it fell on a very short bear market. Be aware of that. You must accept that volatility.

It reports next week. It remains her largest position, despite regular trimming. NVDA will continue to increase until they eat into the backlog sometime in the future.

Huge momentum stock because of demand for chips to build large language models. Close to 40x PE, but growth has been pretty substantial. Concerns about how much capital the cloud companies are spending on chips, scaling might be hitting a wall. Should be more clarity on that in next 6-12 months. Don't chase.

Had its day in the sun, which will likely continue for a time. Be cognizant of what percent of your portfolio is in NVDA (higher percentage brings higher risk); his maximum position size is 6%. A number of companies are trying to skirt NVDA and build their own chips. At some point its lead will decline, though no one knows when.

One of the major chip maker names to consider for your portfolio. Adds value to the supply chain.

Already, cash-rich Google, Microsoft, Meta and Amazon talked about spend spend spend, which NVDA which get a piece of. They will crush earnings again on Nov. 20 and will break out into earnings, after basing at $130. At least a few more good quarters lie ahead.

CEO Jensen will deliver on Nov. 20's quarterly report. Buy the news and fundamentals ahead of time. NVDA remain the leader in semis.

Got stopped out around $110 in July as the semis rolled over. If he loves a company, and the technical picture gets repaired, he doesn't mind paying a higher price to re-enter. He got back in at $114. Undisputed leader in the sector. Technical setup is pretty good. Earnings are due in 14 days; he's holding till then, and hopes it doesn't disappoint. Seems that demand is exceedingly strong, pricing looks good. Blackwell problems seem to have faded.

Worries a bit about the sector; if you take AVGO and NVDA out, it's been one of the worst-performing sectors since July.

Is driven by strong demand in AI and are expanding their product line there. Gross margins are projected to widen to 74% through 2027, given rising volumes in high-margin data centres and pricing power. It replaced Intel in the Dow. The street targets $150, or modest 8% upside. It's had a huge run-up this year. Also, the PE is concerning.

A momentum stock and the PE ratio is compelling. Four companies comprise 46% of their revenues, megatech companies preparing for an AI future and spending a lot. His concern is, what happens when these companies feel they've ordered enough chips? The chip business is very boom and bust. NVDA will go higher, but he can't time the top. Can be treacherous. Watch the budgets of their biggest customers.