Nvidia
Is it the time to buy some Nvidia?As of the last 2 months, there have been some very interesting progressions in NASDAQ:NVDA 's stock. In the beginning of November, they had a drastic price climb (15 percentage points) in the stock due to their announcement of their strong third quarter earnings. Although, a couple of weeks later (the present) their stock has tumbled a considerable 7% and there are many debates on whether the stock shall continue to fall or will have a kickback. Nonetheless, this may present an ideal opportunity to purchase some semi-conductor stocks if it suits your fancy.
For those who have not been following the recent news, Nvidia recently proposed and was acting on an acquisition of ARM a British based semi-conductor company at the hefty price of $40B. The Federal Trade Commission sued Nvidia to have this exchange blocked. Shareholder's were in high hopes for this acquisition as it would benefit Nvidia immensely but the argument that, this would allow them to have an unfair market monopoly has most probably put the "nail in the coffin" for the 'little' business maneuver.
Now the question is, does this price drop make NASDAQ:NVDA quite the attractive purchase for the trader? Personally, I reckon it could be justified based on the trader's frequency of actions. If you plan on holding Nvidia for less than 3 months, you could turn a nifty profit, but if you're looking toward the longer term; you may want to wait for a more considerable price drop as by many investors' standards, it is overpriced.
As usual, other opinions, facts and news are very welcome. Comment away!
TL;DR: Nvidia's price drop as of recent could justify buying for short term trade profits but other wise, 'longer-term' investors may want to wait for a more considerable drop.
Brief overview of the stocks of the 2 major GPU manufacturersRecently I decided to take a delve into the sector of the stock market that truly represents my personal interests, the performance PC hardware sector. I've been performing investigation into various companies such as NASDAQ:INTC (Intel Corporation), NASDAQ:NVDA (Nvidia) & NASDAQ:AMD (Advanced Micro Devices). In many peculiar ways, these companies are very similar but also have some startling differences. What caused me to publish this idea, despite the fact that I am trying to build up some reputation, is I was doing some comparisons between Nvidia and AMD as they are the 2 major competitors in the graphics card market which is currently in some state of paralysis. During my brief investigation, I was trying to identify which option would be a viable option for 3+ year investment. Through some comparison I've come to notice some surprising facts about each company.
First of all, AMD was not a competitive company for more than 10 years after their "birth". Around 5 years ago they were on the brink of bankruptcy, due to various factors including more debt than what could have been considered manageable or sustainable. Since then, Lisa Su was appointed CEO of AMD and pulled the company straight out of that sticky situation. Since then AMD has risen in price more than 1300 percentage points. The company has attained a fairly stable financial position and moderate PE ratio in comparison to its competitors. Considering its growth, the PE ratio and earnings per share are actually impressive.
Nvidia has been established for a significantly longer period of time and have diversified within the hardware market to try maintain their monopoly as best they can despite companies such as AMD coming along and "rocking the boat". Between these 2 companies, they are sitting at very similar positions in the present bull market (At least from the perspective of an investor seeking a diversified portfolio). Due to Nvidia being listed for a considerably longer period of time, they have had time to grow and their overall market cap is sitting at just over $800B whilst AMD is sitting at a quarter of this. Both companies on the other hand have very similar EPS of $3.28 (AMD) and $3.30 (Nvidia). Based solely on statistical indication, AMD will prevail as the best investment choice as they have maintained a considerably lower PE ratio versus Nvidia (47.93 AMD; 97.17 Nvidia) and the PE hints towards their future performance as it has done in the past.
Obviously a multiplier of 47 is by no means 'attractive' but in comparison nearly 100, I would far rather put my money in AMD especially considering how good management at AMD has become, the overall stability is reassuring from a speculative stand point.
TL;DR: AMD is looking to be the far more appealing investment versus Nvidia (lower PE, similar EPS considering stocks available and company capacity)
Trading Idea - #NVIDIA - needs correction#NVIDIA SHORT in the mid-term!
ENTRY: 295.60 USD
TARGET: 236.77 USD (+ 20% profit)
STOP: 317.40 USD
NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, Graphics and Compute + Networking.
1. Chip maker Nvidia (NVDA) caused euphoria with its announcement that it is developing technology for Metaverse applications. Nvidia shares soared on Thursday after a positive report from a Wall Street analyst. It hit a record high on Friday before falling back.
2. The big problem that I have with NVIDIA is that CEO and president Mr. HUANG JEN HSUN is constantly selling huge amounts of NVIDIA shares this year! Some of the 2021 major share sales:
September sale value: 47 millions
August sale value: 84 millions
March sale value: 35 millions
January sale value: 110 millions
3. In the long-term this looks definitely as a good investment because the upward trend is fully intact.
NVIDIA : Good but overpricedI am a trader first and foremost and investor second. I checked the company's fundamentals and I've come to a conclusion that NVIDIA is a good company that I want to buy at least 10 shares of them BUT not at the current price.
I am a swing trader and I will wait for opportunities to buy at the DCF average price of $266 or closer to the technical price that I have established. In other words, I will wait for a correction and then wait for a buy signal
Solid NVIDIA earnng to Propel RallyRevenue increased more than expected to $7.1 Billion vs $6.83 expected. Demand for Nvidia AI is strong. Gaming Revenue up 42% from last year.
After hours we saw a jump to $306-7 but we have cleared the big risk event and a retest of recent all time highs is likely now the good news is out and behind us. Buying small pullbacks to $300 for test of $322.
NVDA Starts to Rise Again?NVIDIA has started a downtrend after a good growth and a bullish trend.
Currently, price is bouncing sideway between the SR zones. We still don’t know if price has done with the correction and the downside move, or it still wants to drop further.
Since price could not make a higher high and has made a lower high:
If the support zone which is around $290 broken out to the downside, there is a high probability of more drop towards the next yellow support zone around $265
On the other hand, price has been pushed to the upside from the first yellow support zone and could not make a lower low:
We can see the upside pressure and if price breaks the red resistance zone around $307 and makes a higher high and fixes above this level, we can expect more rise towards the last major high at $323 and in the case of an upside breakout on this level, the next possible target would be around $365
Intel FOMO - Overseas Supply - Made in America STORYTELLINGTurnaround stories can be polarizing investments -- some see the long-term potential while others see a business full of problems to overcome. HOWEVER, an OVERSEAS SUPPLY CHAIN makes it take longer and cost more money than originally thought. As with ANY company. The supply disruption is PERMANENT. If there is no actionable PLAN B......
The highest Intel ever spent in a single year has been $16 billion. They are expecting it to go up beyond 2022. They're expecting this turnaround to be very expensive. .... because SPEND SPEND SPEND.....
They don't make what they need to in America. Like most US companies that have taken advantage of OVERSEAS PROFITS (ie. Apple, Amazon), they have no other opportunities to build what they need, where they need to. Supply Supply Supply.
Stuck in the ocean & ports like EVERYTHING else from the OLD ECONOMY.
I'm a fan of SOFTWARE. #cannabisreform software. $KERN
Looking forward to the Republican led "States Reform Act" on Monday.
GL all
Go Biden's "BUY AMERICAN ACT". Time to generate US MANUFACTURING & SALES in country. What a thought.... lol
PS. JUST BE SURE THE COMPANIES YOU INVEST IN CAN ACTUALLY MAKE THEIR PRODUCTS IN AMERICA SHOULD THEY SHIFT THEIR MANUFACTURING...... yikes