tech
It's not too late to buy Nvidia. Here are the reasons we say 'own it, don't trade it'
"If you wanted to buy some here, I totally endorse it. I just feel that we own it, we don't wanna trade it," Jim Cramer said Monday.
TL;DR
- Nvidia stock recently experienced a 7% drop from its all-time high.
- Upcoming earnings are a key event, with a 'beat and raise' quarter expected as a minimum requirement.
- Despite short-term swings, experts endorse buying Nvidia now, advocating for 'owning it, don't trade it'.
- Nvidia is considered undervalued compared to competitors like Broadcom, Marvell, AMD, and Intel based on forward earnings.
- The company is at the heart of the AI trade, with significant investments in data center suppliers and customers.
- Long-term potential is immense, with projections of 100 times more computing power needed for future AI advancements.
- Emotional discipline and controlling investment decisions based on long-term fundamentals are crucial.
- Risk-reward analysis suggests significant upside potential (80%) with limited downside risk (around 2%) based on technical support levels.
- Fundamental reasons to own Nvidia include its cheaper valuation, rapid growth, and recent breakout from consolidation.
- Hyperscalers are showing strengthened demand, with major tech companies increasing capital expenditure plans for AI.