To The Moon

🌟🌟🌟📮📮📮All eyes will be on $NVIDIA Corp(NVDA)$  earnings this Wednesday as AI Boom reaches epic proportions!   There is probably not an earnings release more exciting for the markets right now than Nvidia FY 23 Q4 earnings. 

Analysts expect revenue of USD 20.4 billion up 238% year on year and EPS of USD4.60 up 613% year on year.   This is certainly the most extraordinary increase in a mega cap business ever recorded.  It is incredible for a USD 1 Trillion market value company to have a 12 month revenue of USD 45 billion and a net profit margin of 55% grow at such a fast pace.

However today Nvidia dropped 4.5% as investors are worried whether Nvidia's expensive valuation can continue to fuel the buying frenzy over AI related stocks.

Other Semiconductor stocks also dropped in tandem with the drop in Nvidia 's share price.

$Advanced Micro Devices(AMD)$  dropped 4.7% today.  However it is still up 19.5% year todate and has jumped 115% in the past year. AMD is Nvidia' s closest competitor but a far second with only about 10% of the AI chips sector market share.  AMD has announced its MI300 chips and its Ryzen 8040 mobile processors in December 2023.    These chips will power faster AI training.

$Taiwan Semiconductor Manufacturing(TSM)$  also dropped 1.14% today but is up 23% year todate and 43% in the past year.  TSMC has the world's largest dedicated Semiconductor Foundry whose customers include AMD, Nvidia, Apple, ARM, Broadcom.

$Intel(INTC)$  however jumped 2.3% as it is currently in talks to get an additional USD 10 billion from the US Chips Act subsidies because Intel feels it deserves more cash resources for investing in the US chips developments.

$Semiconductor Bull 3X Shares(SOXL)$  is down almost 5%  but is up 29 % year todate and a huge 159% last year.  SOXL provides 3x daily exposure to a modified market cap weighted index of 30 US listed Semiconductor companies.  However it is not recommended to hold SOXL long term due to its compounding effects of this daily rebalance. 

According to Tipranks, Nvidia is a Buy with a average Target price of USD 746.91, an upside potential of 7%, based on 40 Wall Street Analysts.  

I believe that this is just a temporary setback for Nvidia as it plays a key role in the continued growth in AI.  Nvidia's specialised chips is like the picks and shovels of AI, without which future growth in AI will grind to a screeching halt. 

This is a golden opportunity to bargain hunt Nvidia since its share price has dropped below USD 700 and hold long term. 

As Warren Buffett likes to say When there is fear in the markets it is time to be greedy. 

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