A man named Jensen Huang, who is the boss of a company called Nvidia, said they are making new and better computer chips called Blackwell. He also said that these chips will help make smarter AI computers. People who use Nvidia's products can buy these new chips when they come out and improve their businesses. Read from source...
- The title is misleading and sensationalist, as it implies that Nvidia will make a lot of revenue from the Blackwell chips this year, even though Huang only said they are expecting a lot of revenue in general.
- The article does not provide any concrete details or numbers about the Blackwell chips, their features, performance, or market potential. It relies on vague statements and quotes from Huang that do not reveal much.
- The article mentions a "terrific" update timeframe for the Blackwell chips, but does not specify what kind of updates or how often they will happen. This creates uncertainty and confusion among readers who might expect frequent major changes to the product.
- The article uses terms like "trillion-parameter scale generative AI" without explaining what it means or why it matters for Nvidia's customers or investors. It assumes that readers already know or can guess the significance of this concept, which may not be the case.
I have scanned the article you provided and found several points of interest for potential investors in Nvidia (NVDA). Here are my top three recommendations based on the current market conditions, expected revenue growth, and technical analysis. Please note that these recommendations come with certain risks that I will explain below.
Recommendation 1: Buy NVDA at current prices or on dips - The article suggests that Nvidia is gearing up for a lot of Blackwell revenue this year, which is expected to boost its earnings and stock price. Additionally, the company has a strong position in the data center market, which is growing rapidly due to the increasing demand for AI and cloud services. This recommendation has a moderate risk level, as Nvidia's valuation is relatively high compared to its peers, but it also has significant growth potential.
Recommendation 2: Sell short NVDA at overvalued levels - If you believe that the hype around Nvidia's Blackwell chips and AI capabilities is overblown, or if you think that the market will soon correct and sentiment will turn negative, you may want to consider selling short NVDA. This strategy involves borrowing shares of Nvidia and selling them at their current price, hoping to buy them back at a lower price in the future and pocket the difference as profit. However, this recommendation has a high risk level, as it relies on predicting the market's movements correctly and managing your exposure to potential losses.
Recommendation 3: Wait for a pullback and buy NVDA - If you are not comfortable with buying Nvidia at its current price or on dips, you may want to wait for a pullback in the stock price before entering a long position. This could be due to market volatility, negative news, or simply a correction after a recent rally. This recommendation has a low risk level, as it involves waiting for a better entry point and avoiding the possibility of buying high. However, it also has a low reward potential, as you may miss out on some gains if the stock continues to rise while you are waiting.