tech
Bet on an Nvidia rally
Shares of the chip giant are well below the all-time high, but an opportunity to bet on the next leg up has emerged.
TL;DR
- Nvidia's stock has risen over 1,200% since October 2022 and is now the largest S&P 500 component.
- The company's GPUs are central to the AI revolution, controlling 85% of the AI accelerator market.
- Despite its strong performance, Nvidia trades at a reasonable forward P/E ratio, with 60% EPS growth.
- Call options on Nvidia are currently as cheap as they have been in over four years, offering a cost-effective way to bet on future price increases.
- The NVDA CallDex has collapsed to 55, signaling a rare opportunity for bullish traders.