I was reading the news this morning about how AMD is getting more investor’s interest as a competitor to NVDA’s GPU chips. This always happens when a momentum/trend darling gets too expensive or too crazy for the smaller boys to handle. NVDA is in squarely in the hands of the big boy gamblers and if you can’t run with them dawgs, you better go find something else to trade. Hello AMD! ...
If it’s not the Fed rate cuts, then it’s NVDA’s tear higher. It’s going to the moon as r/WallStreetBets people would say. The good news is that it’s trading at an all time high and I expect it to break the $700 price level before it takes a breather, but I don’t know. Who really does? NVDA is having a field day because because all the big tech companies (META, MSFT, etc) and anyone else who relies on GPUs for Generative AI is buying their products. The demand in this nacesent but transformative market is like the comet that killed the dinosaur, the world will be radically different once Gen AI is everywhere and in every process. ...
History might not repeat but it sure rhymes which seems to be the case here. I remember back in 2000, right before the Dot Com crash when four stocks, affectionately known as the “Four Horsemen” ruled technology. They generated so many gains with quarter after quarter of earnings growth. It seemed to go on forever until it didn’t anymore. I’m talking about MSFT, INTC, CSCO, and Dell.. Today we’re repeating this same lunacy except it’s the Magnificent Seven that rule technology in nearly the same way. Their strong price action is pushing the S&P500 to new all-time highs, which I’m a BIG fan of, but I can’t help but wonder one damn thing. ...
It finally happened, again. Nvidia (NVDA) breaks out to a new all-time high! Long-term trend followers rejoice because it was on decent volume, +63 million shares traded. Could it go higher from here? Definitely. These long-term trend plays tend to keep going until something turns the entire market, or they cheat/lied. Then it all comes crashing down. Long term holders (not trend followers) have been rewarded handsomely over the years. NVDA’s performance, relative to the Nasdaq, started to diverge around 2016. It’s price appreciated substantially more than the broader tech market and everyone rejoiced until mid 2018. ...
Nvidia stock is near an all-time high after earnings beat, but some investors worry about it peaking.
Yeah here’s a weekly chart of NVDA. You can see it’s still in an upward trajectory although the last few weeks have been very volatile. I made a good chunk of taxable profit on this one because I was trend following and got stopped out after a few months. Ideally I’d like to have ridden NVDA’s trend for over a year but the market does what the market wants to do and I’m just grateful to have doubled my investment. ...