NVIDIA Corporation (NVDA)

They reported yesterday and expectations were great, but the report was not great. Hence, shares are weak today. It trades at 14x 2024 sales, which few companies can achieve. Tesla was one, and when they reached that, they had a 70% drawdown.

It's in a league of its own, but there was a big concern where the semis would have excess inventories. It comes down to execution in the face of lower demand and a slower economy. Going into 2024, look at what Nvidia will align with, such as data centres, the number of which will likely decline. The semis space won't see a rising tide lifting all boats, despite a secular tailwind.

They report after the bell and the market is watching this closely. They gave eye-popping guidance 90 days ago, calling for $16 billion in revenue. The street consensus is validating that.

The leading chipmaker with 75% of revenue from data centres, and an essential partner in cloud infrastructure. A strong AI play.

It has been in the sweet spot with its chips products for the cloud business. The U.S. is supporting the production of chips within its borders. Buy even if there is a miss on the next quarter.

If you've owned this this year, when it's had a monster move up, it makes total sense to pare back your holding as we close this year.

It's moved up nearly $100 since Oct. 31. It held $400 and has terrific momentum, but the risk is to the upside. They remain the heavyweight champions of AI GPUs. 

NVDA is pricier, but higher growth prospects. 33x forward PE, 17x forward price to sales. 57% long-term growth forecast, very strong. 
META is 20x forward PE, 5.9x forward price to sales. Cheaper than NVDA, but growth rate only 24%, which is still great. Bit more of a "value" play.

Both screen well, but NVDA is a touch better.

Not cheap, but growth is unbelievable. Can they keep this growth rate going, and if so, then shares are cheap. This isn't his kind of thing. Too volatile for him. He's not a big risk-taker, but a good company with wonderful products.

He sees multi-year growth, because they are the king of AI worldwide.

Phenomenal company. Seems to be ahead of every trend. It's all about the sales for the back half of 2024. When sales dry up, it can have a lot of earnings volatility. Probably has a bright future.

Instead, he owns AVGO, which is also benefitting from the AI buildout. Lower price, less growth, more diversified. 

Since its blow-out quarter in the spring, the stock hasn't broken out, so investors are dismissing it. Each time this dipped, people fled. But he fully believes this story--they make chips vital to AI. They practically invented the market for AI chips. Own, but don't trade this.

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.