To The Moon

NVDA rose 3.1% in Friday's session, bringing its weekly gains to 7.4%. In the process, the shares
achieved their longest weekly winning streak on record, according to Dow Jones Market Data - as they advanced for the 11th week in a row.

While some thought Nvidia's stock might come under pressure after the company's annual GTC event, which took place earlier this week, the momentum has continued. Nvidia's stock finished Friday's session at a record all-time closing high of $942.89. That made for its first new record finish since March 7.

Missed it during the convention? But fret not!

The chip giant is poised to sell more recurring-revenue products, rather than just one-and-done hardware sales. In what seems like just one in a series of critically important moments for the most followed and scrutinized tech company in the world, Nvidia Corp. (NVDA) hosted developers, partners and analysts this week in San Jose, Calif., for its annual GTC event. This is Nvidia's preeminent showcase of everything related to artificial intelligence - at least it's become so, as Nvidia shifts its focus from gaming and graphics to computing and AI.

The big question attached to this event, and to Nvidia itself for the foreseeable future, is whether the company can keep riding this wave of AI growth and unprecedented leadership.

Appearing relaxed and sounding confident, Nvidia Chief Executive Jensen Huang announced the next generation of the
company's AI processors, code-named Blackwell and called B100, B200, and GB200. This follows its currently shipping products, called Hopper (H100), and supplants them as the highest-performance chips for AI processing.

The Blackwell AI chips have some key architectural differences from the current generation that is keeping Nvidia in the driver's seat. The new parts offer anywhere from 2.5x to 5x better performance across a range of workloads - from training newer and larger AI models, to providing the inference compute necessary for deploying those AI models to the market.

Nvidia made even bolder claims like a 30x increase in AI-inference performance, but that comes with several caveats about the quantity of chips used in the server and the use of a new data format that the H100 doesn't support. Still, there is no getting around the fact that the B200 is going be a big step forward in raw AI performance compared to what is shipping today.

The new chip offers a much larger memory capacity, up to 192GB compared to the current 80GB, which means it can integrate bigger data sets for its training and inference models, allowing developers like OpenAI to build new
capabilities even faster.

NVDA is leading in the bull run

UBS analyst Timothy Arcuri was upbeat with the chip giant, hiking his price target to $1,100 from $800 in a Thursday report. That note was titled: "The Only Chip Company That Can Create Its Own Mkt."

In Arcuri's view, Nvidia "sits on the cusp of an entirely new wave of demand from global enterprises and sovereigns." The company sees opportunity as nations build out sovereign AI, and Arcuri estimates that some of those
countries could each end up as big as one large U.S. cloud customer.

He also weighed in on Nvidia's pricing commentary for its new chip lineup, as some have worried that the company was pricing the chips too low for the value they offer customers. Such concerns "are misguided," from his perspective.

"Blackwell has a generally greater emphasis on systems versus GPUs and margins will differ" depending on mix, he noted.

"Given the complexity of these systems, margins will naturally be lower in the early stages of Blackwell but this was also the case for Hopper," the company's current architecture. For that reason, "across the entire life cycle of
Blackwell, we expect a very similar margin profile to Hopper," Arcuri continued.

A high probability win trade

⚠️ Trading tips: the premium for NVDA doesn’t come cheap. Hence, looking at NVDA bear call spread on Monday:

-Sell call 1090, buy call 1100, expiry 5 April 2024, credit $62 per con.

-Risk management: can choose to take profit within green zone or cut before 1090. Not financial advice!

An update on futures trading progress. Have been trading MES & MNQ futures daily since Feb 1. Very blessed to achieve 100% win rate nearing the second month. Looking forward to achieve 50% in another week to complete the two months challenge before considering to level up 🙏

Futures trading summary

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