Answers ( 7 )

  1. Nvidia has fallen way behind it’s true

  2. Yes it will. If nothing more, between macro and a quite probable dillution to enjoy fresh capital to better face the future AMD will fall below 20

  3. Well NVDA is down to 248 on fears that it will not earn $7.50. I expect MU to drop in sympathy, depite the fact it earns about $12 and analyst fear that may drop to $7.50

  4. Obviously, NVDA, a growth stock, might not be right for a true value investor. The question is whether the expected growth and cash flows justify the price. Easily.

  5. How did people not realize the growth in NVDA sales was directly correlated with the massive spike in crypto mining profitabilty? When you could make $100+ a month with a single GPU resulting in such quick ROI, did people really not think the profiteers would come out of the woodwork? The real shame should be on Nvidia management for lying to shareholders and the market.

    0

    NVDA CEO Huang Jensen raised more questions than he answered in his conference call. The headline was an EPS and revenue miss with weak and uncertain forward guidance. Operating income and gross margins declined. The latter is probably associated with price cutting to reduce a multi-quarter excess inventory of Graphics Processing Units. This is almost certainly associated with the industry wide collapsing bitcoin mining business. More troubling, It may also have spread over to gaming. Market pickup of the new Turing GPU is slower than anticipated. Data center growth, while impressive in absolute terms, is also below forecast. Lastly, the broader semiconductor sector is under real and sustained Wall Street selling pressure. In summary, the macro environment is negative, and NVDA visibility is uncertain. NVDA does have the most innovative suite of GPU technology, and is a leader in supplying two fast growing industries gaming, and data centers. Absent a catalyst, the company is in a multi-quarter show me investor penalty box. Since the firms potential is widely recognized, a positive catalyst could very quickly reverse today’s post earning report negative sentiment. Let’s wait for the event selling to dissipate to determine where the stock stabilizes. Alternatively, you may wish to consider options as risk NVDA containment trading strategy.

    Technically, $ 164.30 is a key 2 year NVDA Fibonacci support price. A closing below that level could presage a drop to $134-$140.

  6. I’m afraid many investors marry with a company / stock…

    There’s ways to make good money on Nvidia without betting on a direction. It’s a highly volatile stock and you can use exactly that when using a long strangle options strategy. I tested it last night and lost the full 100% on the call option BUT gained 318% on the put option. I couldn’t care less if it were the other way around. Equities move higher in phases. One time you make money on going up, the other time on going down. But always with much less money at risk than being long the stock.

    You can either use this as a stand alone strategy like I did or to partly hedge potential nasty surprises. The only risk the strategy has if all of a sudden there is no volatility. That risk for Nvidia is really really small in this market.

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