NVIDIA Corporation (NVDA)

Cutting-edge chips, riding AI wave. Explosive earnings growth. Runup not unjustified. Forward PE for next year is 35x earnings, not massively unreasonable. Likes it, but be cautious on valuation, riding high. Watch, add on pullback.

It can be hard to be patient, but look what happened yesterday. We're going to have volatile days. You'll get your chance to buy it.

Many like herself are waiting for more of a pullback and feel that this rally doesn't feel right, doesn't feel good. She's nervous about Nvidia reporting next week. If they blink wrong, there'll be a sell-off like yesterday.

Own it, don't trade it. The current rally is unsustainable. Don't trust this parabolic move. Yes, he likes this stock and considers it an essential holding. It reports Feb. 21 and shares could fall is that report is disappointing, but then again who want a stock that disappoints?

$600 billion of market cap has been added to its market cap over the last 5 weeks, but nothing fundamental has changed with the company, not even close. It's down to exuberance. He isn't selling now, but is waiting for a rollover day to do so.

It has doubled four times in the past five years. Historic. Take profits to adjust your weighting. She manages her portfolio by selling calls on this name as it has climbed. But she's concerned with this exuberence driving up this name and other semis names. They're up 30-100% right after they report; this does not make sense. There's a ton of froth in AI stocks. If you believe the consensus projections for the next 3 years, then yes, this is a cheap stock now, but 31% topline sales growth is huge.

Could hit $700 near term. Well-known leader in chips. There's further growth ahead. The only caveat is that this is a crowded trade, but that trade could simply get more crowded.

In the sweet spots of AI, gaming, and the cloud. Huge advantage over everyone else. Continues to be high growth. Semis have become political, as US and Europe want to protect this technology, and this is helping the sector. Market may have overestimated the stock a bit, so buy on pullback, will continue to do well.

Given their backlog, every chip they produce gets sold. But a lot of companies are now making chips. NVDA is a very expensive stock, and will have blow-out earnings this year, but what will happen in 2025? Shares have already built in gains of 2025. This is a momentum play, but be ready to sell. He won't play this game.

Lots of talk and hype. Controls 80% of superchip and GPU market, so difficult for competition to cut their grass for a while. Margins are enormous, producing a lot of money.

80% market share in discrete graphics processing. META just bought 350K units. Phenomenal new products. AI is still in early innings. Yield is 0.03%.

Analysis suggests this $600 stock can reach $900. $500 is the new floor of support, not resistance. Money managers can't get enough of the chipmakers.