Friday, March 22, 2024

I Have Heard Of This Nvidia You Speak Of (first call for a $10 trillion market cap) NVDA

I have heard wondrous tales of immense wealth,

Of amazing deeds performed as if by magic.
Yes I have heard*of all of this....but hang on one 'effin minute with the $10 trillion talk. Let's get to $1000 on the stock before we join Coleridge at the hookah. [In Xanadu did Kubla Khan...]
Here's a twofer. First up, from MarketWatch, March 21:
This analyst thinks Nvidia is headed for a $10 trillion market cap. These are other stocks she’s eyeing. 

“We believe Nvidia can surpass Apple by capitalizing on the artificial intelligence economy, which will add an estimated $15 trillion to GDP.”

That was Beth Kindig, lead tech analyst at the I/O Fund, making a prescient call on the AI chipmaker in August 2021. Fast forward and investor fave Nvidia NVDA boasts a market cap of $2.23 trillion, versus Apple’s AAPL $2.72 trillion.

The I/O Fund, an actively managed tech portfolio that offers stock research and trade alerts, takes credit for a list of notable past predictions. Kindig made another bullish call on Nvidia in early 2023 when it finished up 238%.

In our call of the day, Kindig offers some fresh tech thoughts via a chat with Jordi Visser, CIO and chairman of Weiss Multi-Strategy Advisers via Real Vision. Among those, she sees Nvidia hitting a minimum valuation of $10 trillion by 2030, mostly due to AI software....


And from Investor's Business Daily, March 22:

Nvidia Gets Bullish Analyst View After AI Conference; Is Nvidia A Buy? 

Nvidia (NVDA) headed higher on Friday after the conclusion of its artificial intelligence conference. The weekly chart on IBD MarketSurge shows the stock has rallied for an unbroken 11-week stretch since its January breakout. Is Nvidia stock a buy now?

On Monday, Chief Executive Jensen Huang discussed the artificial intelligence leader's new chip, Blackwell, at the company's AI developer conference, which finished Thursday. The new AI chip will accelerate computing and will available through several Nvidia partners later in the year.

UBS analyst Timothy Arcuri has increased Nvidia's target price to $1,100 from $800 while holding a buy rating.

Arcuri said that following the Blackwell launch, "we believe Nvidia sits on the cusp of an entirely new wave of demand from global enterprises and sovereigns — with each sovereign potentially as big as a large U.S. cloud customer."

After huge runs — it soared 239% in 2023 and is up more than 80% thus far this year — is Nvidia stock a buy?

Huang gave the speech on Monday when the event started. Ahead of the conference, Truist analyst William Stein raised Nvidia's price target to 1,177 from 911. He sees stronger demand in 2024 and 2025 for Nvidia's chips. Analysts at HSBC also increased their price target, going to 1,050 from 880. Both Truist and HSBC maintained a buy rating on the stock.

Earlier, analysts at Bank of America raised their price target to 1,100 from 925 last week.....

In 2015 we started using a boilerplate intro to the company, here's a 2016 version saying "Focus on the AI/Machine Learning":
NVIDIA: Don't Buy the Stock For The Autonomous Car Stuff (or virtual reality) NVDA; TSLA; IBM
The stock is up $2.21 (+2.64%) at $85.85. [divide that by 4 to account for the stock split in 2021]
Yesterday the usually very reliable Investor's Business Daily headlined a story "Nvidia Upgraded On Growth In Car, Cloud, Virtual Reality Fields". As we say in our standard intro to the stock:
Before we go any further, our NVIDIA boilerplate:  
We make very few calls on individual names on the blog but this one is special. 
They are positioned to be the brains in autonomous vehicles, they will drive virtual reality should it ever catch on, the current businesses include gaming graphics, deep learning/artificial intelligence, and supercharging the world's fastest supercomputers including what will be the world's fastest at Oak Ridge next year.
Not just another pretty face.  
Or food delivery app.

It worked out.

NVDA NVIDIA Corporation monthly Stock Chart


NVDA NVIDIA Corporation daily Stock Chart


There is no magic in lines on charts, just a graphic representation of what people were doing (and maybe, thinking.)

The opposite of support being weakened and collapsing is resistance being removed as the last of the sellers are taken out and the stock pops. It is especially dramatic when the stock is setting new all-time highs as there are no investors thinking "as soon as I get back to even I'm out" i.e. minimal overhead supply.
The stock is changing hands at  $942.74 up $28.39 (+3.10%). That's $3770.96 on the pre-split shares.