NVIDIA Corporation (NVDA)

Really likes it, but they haven't reported yet. Wait.

You buy this long term, because it has the best AI content. Buy it short term because the market is so awful.

It won't mean that much to margins. This is a long-term thesis and he wouldn't pound the table unless this falls below $400 (anything is possible).

It has reflected positive news and has surged with the AI momentum - they make the best chips for these applications. It should pull back and there will be competition so wait.

The 200-day moving average is down to $340. Many bought this stock AFTER it moved up. The stock needs to hold here (it's held before). It's had a great year, but many who bought after the rally will sell, she suspects.

He bought it recently. It's shown proven as well as potential returns. Volatility is the price of owning this. Days like today mean take some profits. No, their model is not broken; demand for their chips remain high. People can't get enough of their chips.

The CEO has delivered in execution and performance. Also likes AMD and LAM Research, but not the SMH ETF, because there's such a dispersion with this sector.

He wishes they would, but he has no idea if the company will. He likes the stock.

He's cautious with any parabolic moves, which is what happened with NVDA. It got overbought, but may now consolidate for a while in a healthy consolidation. Possibly, but unlikely it will break down. Don't buy now, because it will consolidate (stay flat) for a while.

12-month price target of $503. He's found that it's tradeable. Keep a core, but you can trim around the edges. You could also sell short-dated puts, as the volatility gives you pretty decent premiums. Will have lots of competition in 2024 from AMD, Intel, and minor players. 

Top performer of the S&P 500. Hype over AI is real, but there's been too much, and you have to look at the fundamentals. Great growth expectations of 30-35% EPS, but if there's any hiccup, the extended valuation is in jeopardy. Trades at 34x price to sales, whereas the S&P is around 2x. Tech is starting to weaken. 

He'd prefer names not so much in the limelight, like ASML or KLAC. See his Top Picks.

The blue chip play in AI, but trading at an astronomical valuation. Don't buy today. Superb company, but remember there's a difference between the stock and the company. Wait for some dislocation in the market, semis are very cyclical. With increased competition, he predicts NVDA will have some huge misses in a couple of years.

He just bought some shares. They reported a phenomenal quarter. It isn't a cheap stock, but reasonable considering their orders (strong demand); we won't see an inventory glut for a while or maybe none at all. Nvidia's PE is roughly the same as Microsoft's; if MFST is the #1 in AI, then MSFT is #2. The trend is your friend in Nvidia.

Growth is certainly impressive, but valuation is very high as well. The main risk we see is that customers are 'double ordering' as they are worried about supply issues (similar to what happened in many industries during the pandemic). Thus, if this is occurring now, growth could slow, perhaps sharply, in 18 months or so. But, with 70% of the global AI-chip market, business is good and growth is quite secure for the next 12 months at least.  All the companies spending money on AI will have to see a return on their investments one day, but even so the high spend rate could still last several years. So we have a global leader, with excellent momentum, and accelerating (for now) growth. Other than valuation, it still looks very impressive. We have probably made more money buying 'expensive' stocks than we have ever made buying 'cheap' stocks, and we would continue to endorse NVDA as one of the best high-growth stocks globally. But..it is not risk-free! So we would position size accordingly. 
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