To The Moon

$NVIDIA Corp(NVDA)$  is a long term hold for me. Will not jump into buying other chip stocks for now as NVDA is considered cheap compared to the others. What many might do wrong is jumping into another chip stock thinking its the next NVDA. My target price is about $1200. Their earnings shown a growth of about 8%. However, Nvidia is making a China Complaint chip for the China Market that is said to launch this year, I can only see more growth ahead unless there's a change in future news. I will continue to sell calls and puts to optimise RoR. Their graphics and data center side still strong as usual.

I was expecting a +-15% change after earnings report and its currently up 8% after market, It's a good report and I'll get to keep the premiums from my strangle. Wouldn't mind buying more at 545 or selling at 940 (highly unlikely by this week).

$NVDA STRANGLE 240223 PUT 545.0/CALL 940.0$

Things to take note:

- Still increasing demand for AI chips, gpu for gaming and datacenter which nivida practically has a stronghold. As seen in report YoY, QoQ.(bullish)

- NVIDIA will continue to optimise cost as they already have the foundation, as for competitors they will have huge capex to research and produce. (bullish)

- Although the high stock price, its still cheap compared to other chip companies at little over 30 PE. (bullish)

- Almost every sectors (entertainment, healthcare, advertising, content creators, ecommerce etc) using generative AI and generating strong returns. (bullish)

- Many big companies (META, ADOBE, SNOWFLAKE) require NVIDIAs chip for generative AI. (bullish)

- Almost all EV companies using AI are working with NVIDIA (bullish)

- Google making an AI chip that would require less computing power meaning less demand for NVIDIA chips (bear - have to track the progress)

- Softbank seeking 100b to compete with NVIDIA (neutral, softbank, probably gonna lose 60-70% of their investment after ipo)

Earnings call guidance was good with good continued growth with slight margin compression but i think its nothing too worrying. Although my target is $1200, I feel NVDA will be ranged bound 600+_700+ for awhile, earn some extra with strangles. Just my opinion. $NVIDIA Corp(NVDA)$