It appears that NVIDIA Corporation (NASDAQ:NVDA) will have
a very hot summer as it cleans up in the generative AI arms race with its
performance lead in chips.
The chip giant's stock is up 3% so far in July, outperforming the Nasdaq
Composite's 1.2% gain. Shares are now up a whopping 200% on the year.
Nvidia initially hit the $1 trillion market cap level on May 30.
Nvidia is viewed as
boasting the pole position in the AI space due to its chips that power OpenAI's
ChatGPT platform. The company has also inked high-profile generative AI chip
deals with ServiceNow (NOW) and Snowflake (SNOW).
Why the NVDA Weekly
Options Trade was Originally Executed?…..
Goldman Sachs have raised their price target for NVIDIA Corporation
(NASDAQ:NVDA), citing the potential for artificial intelligence to help
boost the graphics card maker's performance.
In a note to
clients, the analysts hiked their 12-month price target to $495 from $440 and
reiterated their "Buy" rating of the stock.
Nvidia predicted that it will see elevated demand for its data center chips,
which play a key role in powering the generative AI technology that has seen a
significant spike in popularity this year. Generative AI, which is used by
tools such as OpenAI’s ChatGPT, uses past data to create new content such as
text, images, and programming code.
Sachs analysts noted that this "step-function increase" in expected
demand for data center chips suggests the company is on the verge of a new
phase of growth driven by the "emergence and proliferation of [g]enerative
that they are raising their estimates for Nvidia's revenue and non-GAAP
earnings per share in its 2025-2026 fiscal year, arguing that there is
"significant runway" for its data center business.
The NVDA Weekly
Options Trade Explained.....
** OPTION TRADE: Buy NVDA JUL 28 2023 450.000 CALLS - price at last close was $5.30 - 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 Tuesday, July 11,
2023 for $5.45.
Sold half the NVDA Weekly Options contracts on Wednesday, July 12, 2023, for $10.90;
a potential profit of 100%.
Sold more NVDA Weekly Options contracts on Thursday, July 13, 2023, for $22.00;
a potential profit of 304%.
Holding the remaining NVDA weekly options contracts
for further profit before expiry.
Don’t miss out on further trades – become a
Further Catalysts for the NVDA Weekly Options Trade…..
Shares of Nvidia rallied in June, with shares climbed 12%, according to
data provided by S&P Global Market Intelligence. That's nearly double the
6.5% gains of the S&P 500, compounding its impressive gains so far in 2023,
with the stock up an eye-popping 189% as of market close on June 30.
Helping fuel the semiconductor giant's rally was a wave of price target
increases from Wall Street, as analysts scrambled to update their models in the
wake of Nvidia's exceptionally strong guidance for the current quarter.
The company signaled an inflection point in the evolution of artificial
intelligence (AI) when Nvidia reported the financial results of its fiscal 2024
first quarter (ended April 30). The company generated revenue of $7.2 billion,
a decline of 13% year over year, resulting in net income of $2 trillion, down
While that might not seem like much to write home about, it was Nvidia's
blockbuster forecast that took Wall Street by surprise. For the second quarter,
management is guiding for revenue of $11 billion, up 64% year over year and 53%
sequentially. CFO Colette Kress cited "growing demand for generative
AI" as driving its forecast higher.
NVIDIA had its target price raised by Tigress Financial from
$320.00 to $560.00 in a research report sent to investors on Friday.
Analysts at Morgan Stanley raised their price target on
Nvidia to $500, up from $400, while simultaneously naming the stock a "top
pick" in the semiconductor space. This suggests potential upside for
investors of 18% -- even after the stock's nearly 200% gains so far this year.
The investment bank cited growing demand for AI, suggesting that only Nvidia
was in a position to "beat and raise this year," according to The
Jefferies analyst Mark Lipacis also raised his price target
to $500, citing Nvidia's stack of AI hardware and software solutions, calling
the company "the compute leader by far today in the early innings of
Analyst Dan Ives was among the most bullish, saying AI
represents the "fourth industrial revolution," with Nvidia as one of
the primary beneficiaries, citing a "long runway of growth ahead."
According 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, 5 hold ratings, 30 buy ratings and 1 strong buy rating
for NVDA. The average twelve-month price prediction for NVIDIA is $400.68 with
a high price target of $560.00 and a low price target of $185.00.
"We continue to see upside to EPS of
$10 in [calendar year 2023] for Nvidia (versus consensus $7.49), with our
scenario implying growth to $30 by 2027 (at only 20% acceleration
attach)," Evercore ISI analyst C.J. Muse wrote in a new client note.
"Nvidia remains a top pick with beats and raises along with positive
AI-related headlines driving continued momentum for shares through the year
(and likely supporting the [semiconductor sector index] SOX higher as