IB Net Payout Yields Model

Nvidia: The Gig Is Likely Up

Update - Aug. 30, 2023

Nvidia get easily pop to new highs on the big guide up to FQ3 revenues of $16 billion. Though, the big risk to longs is a potential double top setting up after the run to $500 today. 

Finviz Chart

 

Original article published on Aug. 14

  • Nvidia Corporation hit our target price of $480 providing the opportune time to exit on momentum at a premium price.
  • The company is facing an AI GPU chip shortage potentially limiting sales growth and pushing customers to seek cheaper alternatives from AMD.
  • The stock still trades at a very expensive 17x FY25 sales that appear increasing difficult to meet, much less exceed.
  • Out Fox The Street members get exclusive access to our real-world portfolios. See all of our investments here » 
Unfortunately, these articles can't be written fast enough, but Nvidia Corporation (NASDAQ:NVDA) hit our prior price target and rolled over the last few weeks. The stock jumped nearly 200 points on soaring AI GPU demand, but the company is likely running into supply issues that will dampen sales. My investment thesis is now Neutral on the chip stock with the momentum dead, especially after the 5% bump from Morgan Stanley.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

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