NVIDIA Corporation (NVDA)

Not at all. There are too many people calling for a bubble. You don't have a bubble top when so many people are prognosticating that we might have a bubble. That's one sign.

The other sign is that if you look at forward earnings, it may be 26, 27, or maybe 30x forward PE. COST and WMT are trading at 50x. So that's not really a bubble. The darling of 2000, CSCO, was trading at 126x sales. That's a bubble.

He can see a bubble at some point in the future, and it's likely as this name continues skyward. But at the moment, it's fundamentally viable and driven by the demand for compute. The demand is actually there. Their chips are needed for AI, and the only reason we can't run AI at its full capabilities is because we can't get the energy to do so yet.

Just hit a 52-week high today, and that might be an all-time high as well. Heartbeat of the AI space. Lots of runway for growth. 34x forward PE, but for 35-40% growth. From a PEG perspective, not expensive. A name to own as long as earnings continue.

Trading at the top. If you already own it, he'd sell some calls, not to get called away but to earn some premiums. If you want to buy some more, you could sell some puts. If those puts work out, then you'll have bought lower than it is right now. Everyone should own some in their top 10 holdings.

Sees more upside, very bullish. Owns many shares. Q2 reported record revenues. Is still dominant in AI chips. Boasts high margins. A high PE, yes. Don't buy all in now, but be tactical. She trims when the stock price runs up, so you need to actively manage this.

Only trading at 28x for 2027. Growing visibly in high 20s-low 30s. Only problem is if growth starts to slow. At what point do people jump ship? These are cyclical companies. The difference between being super-successful and not executing well can be by a factor of 10, as that's how exaggerated moves can be.

If demand really slows, look out below. Concerns of over-building in AI, might not all be needed, and we don't know for sure. The people saying that we need all this AI demand are the ones benefitting from the rising stock prices. The average of the 50 analysts who cover it are saying it can grow 27%. Still a good deal if what they're saying is true.

It may appear that Nvidia is investing in hardware ($100 billion in OpenAI), but really they are financing the purchase of their own equipment. The market responded by pushing the stock back to record highs where it remain slightly under that. Will this mean NVDA will break out to new highs or are existing shareholders selling? Take some money off the table. He likes AI for the long term, but the market is ahead of itself now.

The announced today they would invest $100 billion in OpenAI as part of data centre buildout. NVDA will continue to make a fortune with this investment. Is up 37% this year. Don't trade it, own it.

Chip business is cyclical. The downslide can be precipitated by overstocking due to high demand, and that inventory has to be worked through. China has now decided it doesn't need the H20 chip, so all that inventory is now in the supply channel.

When you're paying a high price for these companies, your expectations are for sunny days. But you have to plan for the rainy ones.

Today's sell-off of 2.62% had no reason, given China banning their tech companies from buying NVDA AI chips. However, Chinese sales are not reflected in Nividia's current numbers, so why sell? Again, own it, don't trade it, and buy at $160. NVDA remains the heart of AI.

A solid hold. Demand for their chips is not going anywhere, peers can't catch up and their technology remains advanced. Earnings are following the stock price. Accumulate this carefully on pullbacks, like now. The PE is not low, can be volatile, so don't buy a full position just yet.

Has been down 5 of the last 6 sessions. Is up nearly 56% the past year, though. The PE is not that high as earnings continue to climb.

The poster child. Gone up a lot, and its valuation is probably 40x forward PE. Quite expensive, unless you believe that it can maintain the treadmill of that kind of growth. He's not saying the growth is over, just that maybe the growth slows down from here. Perhaps the valuation has to stay here while earnings catch up, or it has to come down a little bit.

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