NVIDIA Corporation (NVDA)

Very high stock valuation. Briefly became the largest company in the world. Owns shares and will continue to own. Company continues to execute well in chip business. A.I. will ensure demand for chips continues to rise. Would recommend buying anytime the shares pullback. Very profitable business that has major tailwinds. 

He trimmed is Nvidia by 10%. Sometimes after a stock split, shares run up, then pull back by 20-25%, and he's prepared for that here. This is his biggest position. He'll see how it plays out. He could sell more next week. Maybe shares can rise to $160.

He's trimmed it over the past year, but not yet now. It's up 38% in the last 3 months. He'll probably trim next week. But long term, the story is still there, given the enterprise demand for Nvidia chips.

He just trimmed it. His holding got too big. This stock is on steroids. He'll trim it again, because he's nervous about the risk/reward. It's his largest position. The price action has been kind of crazy. Too much of the AI boom has happened, stocks over their skies, though some stocks will grow into it, like Microsoft.

When everything's going up together, makes it harder to differentiate on a technical basis. He compares stocks head to head using charts to see which are outperforming.

Right now, NVDA has been the highest ranked stock in US reports, and that's the one he holds. In Canada, CLS has been the highest-ranked stock, and his portfolios hold that as well. MU has been trailing a bit, but might catch up, hard to say.

Quite incredible. Shows that when stocks are attracting capital, they continue to do so for quite a period of time. The trend is still your friend. Still ranked #1.

The largest holding in his fund at 8.7%. He's no longer even writing calls on this one, which means he's no longer hedging this particular position. Analysts' target is not too far away, but every time stock reaches the price target, analysts just nudge it up. Set up rolling stops.

He stress tests his positions every morning. The #1 risk used to be the supply side. Now it's demand, but their order book goes well into 2026, so it shouldn't be an issue.

A phenomenal business. Its rise is justified by its fundamentals. Trades at 40x forward PE, but it's insane how fast this business is growing. They've cornered the market in AI chips. His own concern is that NVDA's clients will eventually design their own chips for their specific purposes. Medium term, NVDA will face more competition. A risk is that it wouldn't take much for shares to slide; all it takes a quarter where growth is no longer 55% and re-rates to 40%. So shares slide by a third. It's tough--don't chase a stock, but NVDA is a phenomenal company. He's wary.

Has such momentum, it could probably still outperform.

Its forward PE always looks expensive, then when you look back it so far it trumps those estimates, so it looks cheap compared to that PE. It's been this way since 2012. Incredible.

Cyclical company that will fall eventually. Would recommend a small position at current price levels. Company is underpinned by solid earnings. Trading at ~42x earnings, which is high, but expecting stock price to continue to rise. 

NVDA's cycle forecast stretching back to Nov. 2023 is negative. NVDA will top out on June 17, then decline for as long as July 30 before rising again in August. He himself (Cramer) recently took profits, because NVDA has had such a monster run. That said, he himself remains a true believer in NVDA and still holds some shares. (He feels the same with Apple, which has had ups and downs this year.)

Usually a stock pulls back right after splitting, but this didn't happen on Monday. Instead, owners held on while those who couldn't afford NVDA shares before entered. Demand has actually risen. Fitzgerald targets $200. He agrees there's more room to run.

She feels that tech is trading at unsustainable multiples and can be volatile when reporting earnings. Nvidia has consistently had good earnings.

First-mover advantage. Gross margins are out of sight at 75%. No one's caught up to it yet. At some point, companies will make their own chips and rely less on NVDA, but not right now. Big tech is spending $200B this year on capex to meet AI demand, and a lot of that is going to NVDA.

Arguably inexpensive. At some point growth will tail off, but he's not smart enough to know when that will happen, so it's in the "too hard" pile.