NVIDIA Corporation (NVDA)

He added more shares after the CEO spoke at a conference. Not a large position and he's still holding significant cash.

It broke $925 and he targets $1,000.

Both are leaders in chips and their packaging. CEOs are cousins, must be something in the water :)  Recently sold AMD, it had a rollover, so looks more attractive. 

NVDA is still fairly evenly priced. 12-month price target of $970. If you ever get the chance, pick up south of $850, and certainly toward $800 would be a great spot. He's much more skewed to this than to AMD.

The top of the Magnificent 7. They announced last night new chips and will move into software. The issue with NVDA is that it's priced for perfection, like doubling earnings this and next year. If something happens (though he doubts it), the stock will tumble. If they deliver, they will have to exceed expectations. Also, it is facing competition as peers work to catch up.

She trimmed, taking profits late last week. Nothing is wrong with the company fundamentals, but a lot of good news has been baked in.

It remains the only game in town, but the downside lately reflects the wider market. People are pausing until they hear from the Fed on March 20. There are always buyers who get in at the top, but are also the first to exit. That's what we're seeing here, in MSFT and Meta. After huge gains, take some profits. It's a good consolidation period influenced by this week's hot inflation numbers. Valuations are inflation, so don't put more money in the market now.

You can make exceptions, as he has with Apple and Nvidia. You can trim, but he's been reluctantly because these have been his best stocks. It's a subjective call, but you can trim when a stock because too large a stock in a portfolio.

At some point, this will correct, but nothing worse. Bears point to the 35x forward PE, but this is growing into its earnings 50% year over year. No sign of inventory gluts. He expects dip buyers to swoop. At some point, you need to trim this, and tomorrow's CPI figure could be the trigger.

A lot of people want to get into this but aren't yet. He doesn't know what the floor of this is. He owns little of it, buying it on a dip last year. Owns more of Taiwan Semi who supplies NVDA.

Recently took some shares off the table. She's owned this a long time. A large position. Shares have doubled in 3 months. It has a perfect set-up now: many buyers with cash, concentrated positions, little capacity and too much demand. Nothing to stop this for the long term, but it's prudent to take profits.

It's clear that the semis stocks are cooling off after strong momentum. SMH and Broadcom are reversing too. This move is healthy. The market is saying it may be time to take some profits off the table. Not all tech, because Alphabet and Apple are higher, but they will benefit if there's selling in semis and a rotation into these names.

Funny thing is, as it continues to go up in price, it's actually getting cheaper on valuation. Earnings have actually increased at a faster pace than the underlying stock has. This is rare. Early stages of the chip-driven revolution. 

At some point, there will be volatility where it's priced to perfection, there will be a hiccup, stock price will come down. Patience is a virtue. You don't want to feel as though you're chasing a stock. Likes it, thinks it will continue to go up, wouldn't chase. Try for a better price point. If you miss it, you miss it.

It hit yet another high today to become the third-biggest company by market cap. It's not overvalued based on its valuation. It's given so many upside surprises, and the AI revolution is still happening--and who knows where it will go? Buy, don't trade, the king of AI.