a Tuesday note, the global markets team at Capital Economics moved up its
year-end forecast for the S&P 500 from 4,500 to 5,500 in 2024 and from
5,000 to 6,500 in 2025.
key driver behind that surge higher will be artificial intelligence, it said.
think investors' enthusiasm about AI has room to grow even further over the
next couple of years," Capital Economics senior markets economist Thomas
Mathews wrote. "New technologies – even those that have turned out to be
genuinely transformative – have often manifested in the inflation of 'bubbles'
in stock prices in the past. We are increasingly of the view that we're seeing
something similar now or, at the very least, that we are in a period in which
enthusiasm about AI technology could grow further and provide a strong tailwind
for equity indices more broadly. "
is the latest strategist to get behind what's become a growing consensus among
firms discussing the outlook for US equities: AI will drive stocks higher.
of America and RBC both referenced AI when boosting their 2023 year-end price
targets for the S&P 500, while Goldman Sachs called the S&P 500
undervalued due to AI.
assume that widespread AI adoption occurs in 10 years and lifts trend real GDP
growth by 1.1 percentage point for 10 years. In this scenario, earnings per
share in 20 years would be 11% greater than our current assumption and the
S&P 500 fair value would be 9% higher than today, holding all else
equal," Goldman Sachs strategist Ryan Hammond wrote in a note on June 6.
The mentions of AI
in Wall Street commentary have followed a first-quarter earnings season
littered with the word.
There are companies
that have laid out clear revenue streams like NVIDIA Corporation
(NASDAQ:NVDA), whose current quarter expectations for $11 billion in
revenue topped Street estimates for $7.2 billion.
Nvidia fell 1.7% to $430.45
on Wednesday, off session lows. But the real divergence is in the charts. NVDA
stock fell after hitting a record high Tuesday. It's still well above the
10-day and 21-day lines. Shares fell 1% early Thursday.
The NVIDIA Weekly Options Trade Explained.....
** OPTION TRADE: Buy NVDA JUL
07 2023 450.000 CALLS - price at last close was $7.61 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the NVDA Weekly Options (CALL) Trade on Thursday, June
22, 2023, at 9:42, for $5.55.
QUICK TO SELL
Sold half the NVDA weekly options contracts on Thursday, June
22, 2023, at 11:47, for $8.35; a
potential profit of 50%.
Holding the remaining NVDA weekly options contracts
for further profit before expiry.
Don’t miss out on further trades – become a member today!
NVIDIA Corporation ranks among the world’s
leading microchip manufacturers and is best known for its contributions in the
fields of graphics and gaming. Its chips and related software power the
fastest, highest-resolution graphics and are featured in a line of products
that include solutions for all end-market uses. Along with gaming, NVIDIA
microchips are used in visualization, datacenter, AI, and autonomous vehicles
just to name a few.
founded in 1993 by three friends and is headquartered in Santa Clara,
California. The company was intended to focus on chips for the budding gaming
and entertainment industry that was spawned by the rise of the personal
computer and the Internet. At the time of its founding, there were less than 30
graphics-focused independent operators and that figure would more than double
over the next few years.
launched its first product in 1995 called the NV1 and paved the way for 3-D
games like Sega’s Virtual Fighter. The next big break came in 1996 with the
launch of Microsoft DirectX Drivers which changed how Windows interfaced with
games. The next year, in 1997, the company will release the world’s first
128-bit 3-D processor. It quickly gains acceptance gaming OEMs and more than 1
million units are shipped the first four months. Later, in 199, the company
will invet the GPU and change the world of computing forever. The GPU will not
only enhance the graphics capabilities of the PC but lead to
accelerated-computing and AI as well. NVIDIA also held its IPO that same year.
Jensen Huang and Chris Malachowsky are still in leadership positions. Mr. Huang
has served as the company’s CEO, president, and board member since the
company’s founding. Mr. Malachowsky serves as a member of the company’s
executive staff and is a senior technology executive.
NVIDIA Corporation is the only remaining independently operating
graphics-focused microchip company in operation. The company’s business has
evolved from the core gaming-oriented business to include graphics-oriented
computing, and networking solutions in the United States, Taiwan, China, and
internationally but gaming is still a pillar of the business.
Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game
streaming service and related infrastructure, and software solutions for gaming
platforms. The company also offers the Quadro/NVIDIA RTX GPUs for
enterprise-level workstation graphics, the vGPU software for cloud-based visual
and virtual computing, and entertainment platforms for OEM auto manufacturers,
and Omniverse software for 3-D world-building.
Compute & Networking segment provides a wide range of solutions for
interconnect, AI/autonomous driving, cryptocurrency mining, robotics, Data
Center platforms and accelerated computing. Products include Mellanox for
networking and interconnect, Jetson for robotics and embedded applications, and
AI Enterprise software among others.
Further Catalysts for the NVDA Weekly Options Trade…..
Research analyst Angelo Zino reiterated his buy rating on NVIDIA stock.
semiconductor stocks, Nvidia has the strongest position in the burgeoning AI
has the greatest revenue representation tied to AI, followed by AMD, Broadcom
and Marvell," Zino said.
"We think Nvidia's GPUs (graphics processing units), software
capabilities, recent entry into CPUs (central processing units), and expertise
on the networking side make it poised to be a clear standout performer for
years to come."
emergence of generative AI as a killer application for artificial intelligence
kicked off a massive upgrade cycle for data center hardware, Zino said.
AI can create content, including written articles, images, videos and music,
from simple descriptive phrases. Artificial intelligence systems analyze and
digest vast amounts of data to create new works. Generative AI also can write
computer programming code.
Nvidia has transformed from a semiconductor company to a total systems
all is said and done, we believe Nvidia will be viewed as the poster child for
all things AI (similar to what Apple (AAPL) has meant to mobility, Amazon
(AMZN) to e-commerce, and Netflix (NFLX) to streaming)," Zino said.
Zino has a
12-month price target on Nvidia stock of $480.
scorching stock rally just hit another milestone.
the Santa Clara-based chipmaker have extended their 2023 gains to an
eye-popping 200% - meaning the price has tripled so far this year. They closed
at a record high of $438.08 apiece on Tuesday. The rally has boosted the
company's market value by an astounding $723 billion to $1.08 trillion.
surge comes as investors pile into artificial intelligence-related companies
including Nvidia, Microsoft and Alphabet following the smashing debut of
OpenAI's human-like chatbot ChatGPT. Nvidia, specifically, has drawn fans as it
dominates the market for high-intensity computing infrastructure that's
required for AI projects.
semiconductor firm entered the $1 trillion market-cap club for the first time
last month, joining a band of other elite companies with sky-high valuations.
The stock rally has also pumped up the wealth of the company's CEO Jensen Huang
to $39.2 billion, making him the 34th richest person in the world, per the
Bloomberg Billionaire's Index.
Stanley has named Nvidia stock its "top pick" and forecast this week
that the company's shares could climb a further 15% from current levels.
investor Stanley Druckenmiller, who has snapped up $220 million of Nvidia
stock, has said the shares are worth holding onto for the next few years.
ESG Funds .....
Corp.’s stratospheric ascent has lured at least 100 more ESG funds in recent
weeks, transforming the company into one of the most popular stocks among asset
managers who integrate environmental, social and governance metrics into their
now over 1,400 ESG funds directly holding Nvidia, according to data compiled by
Bloomberg based on the latest filings. A further 500 are indirectly exposed,
the data show. Nvidia shares hit a record high this week, bringing gains so far
in 2023 to about 200%.
is now more popular among ESG investors than traditional green powerhouses such
as Vestas Wind Systems A/S and Tesla Inc., according to the Bloomberg data. The
funds analyzed are registered as either “promoting” ESG, making it their
“objective” or simply marketing themselves as ESG.
become an “ESG darling,” said Felix Boudreault, managing partner at
Montreal-based Sustainable Market Strategies. And that’s “not ludicrous,”
because the company is “exemplary” when it comes to traditional ESG risk
management, he said.
Klier, chief executive officer of sustainability data and technology firm ESG
Book, calls Nvidia “one of the best-performing companies in the large-cap
universe,” thanks to a high level of ESG disclosures and a business that’s
aligned with the critical global warming threshold of 1.5C.
partner and director of sustainable investing at Earth Equity Advisors, a Prime
Capital Investment Advisors company, says Nvidia is “absolutely” a good
sustainable investment. “They’re making the steps that big companies need to
make to both be lighter on the planet” with their products, and contributing to
innovation, he said.
On May 24,
the chip giant delivered a big beat-and-raise report. The Nvidia earnings
report included a bullish, AI-fueled sales forecast.
Clara, Calif.-based company earned $1.09 a share on sales of $7.19 billion in
the quarter ended April 30. Year over year, Nvidia earnings dropped 20% while
sales fell 13%. But the results easily outpaced Wall Street's expectations.
data-center sales rose 14% to $4.28 billion. Gaming-chip sales fell 38% to
expect Nvidia earnings to rebound 109% in fiscal 2024, on a 55% sales gain.
Last year, Nvidia earnings fell 25%.
hype surrounding the Tech sector is real and likely to propel future growth for
many stocks within the space," BMO Capital Markets chief investment
strategist Brian Belski wrote in a note that included an S&P 500 price
target bump on June 5. "So, despite an extremely strong (year-to-date)
sector performance, we believe the momentum, even if it slows a bit, is likely
to persist for the foreseeable future."
to the issued ratings of 37 analysts in the last year, the consensus rating for
NVIDIA stock is Moderate Buy based on the current 1 sell rating, 6 hold
ratings, 29 buy ratings and 1 strong buy rating for NVDA. The average
twelve-month price prediction for NVIDIA is $383.19 with a high price target of
$500.00 and a low price target of $133.00.
Nvidia stock rocketed in
May on blowout earnings and strong guidance.
Year to date, Nvidia
stock has skyrocketed 195%, after crashing in 2022.
Shares of NASDAQ NVDA traded down $7.63
during midday trading on Wednesday, hitting $430.45. The stock had a trading
volume of 54,856,239 shares, compared to its average volume of 49,124,965. The
company has a quick ratio of 2.79, a current ratio of 3.43 and a debt-to-equity
ratio of 0.40. The stock has a 50 day simple moving average of $328.19 and a
200-day simple moving average of $249.89. The company has a market
capitalization of $1.06 trillion, a PE ratio of 228.17, and a P/E/G ratio of
2.95 and a beta of 1.75. NVIDIA Co. has a 1 year low of $108.13 and a 1 year
high of $439.90.
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