To The Moon

Have you ever missed out on opportunities due to high stock prices?

Last November, $Broadcom(AVGO)$ broke through $1000, and just a few days ago, it surged again to $1445. In early March this year, $NVIDIA Corp(NVDA)$ hit a new high of $974.

There is an investor who seized the opportunity, earning $37,192 with AVGO and $33,359 with NVDA.

How did he do it? Let's find out.

Congratulations to @Aaron_NCC for the impressive $37,192 return on $Broadcom(AVGO)$ with a cost price of $1267. 👏

Congratulations to @Aaron_NCC for the remarkable $33,359 return on $NVIDIA Corp(NVDA)$ with a cost price of $865. 👏

Now, let's invite @Aaron_NCC to share his trading strategy. If you're interested in learning too, please comment or like![Applaud][Applaud][Applaud]

Back to AVGO: High stock price or high valuation?

AVGO soared by 108.45% in the past year. Since reaching its peak of $1440 in March 2024, investors have witnessed long-term consolidation. Its forward-adjusted EBITDA multiple stands at 20.5 times, significantly higher than its 10-year average of 11.5 times, reflecting considerable optimism.

However, proponents of AVGO might argue that by 2022, AI revenue accounted for less than 5% of semiconductor revenue. Hence, investors should evaluate its prospects based on the sustainability of its AI outlook in the mid-term. Considering AVGO's AI revenue is crucial, with an expected 20% share of total revenue base in the 2024 fiscal year.

AVGO's price chart tells a story. The market is confident in this semiconductor company's ability to realize its AI ambitions, fortified by its wide moat. Hence, buyers who bought on dips staunchly defended substantial pullbacks over the past year.

At what price would you consider buying AVGO on a dip?

NVDA: Bullish or bearish as earnings approach?

NVDA surged by a staggering 204.02% in the past year. In early March this year, its stock price hit a new high of $974.

Comparisons between NVIDIA and $Cisco(CSCO)$ and the dot-com bubble often arise. Does it make sense? Cisco's PE ratio approached 240 times before the crash, indicating a significant portion of earnings came from multiple expansion. However, NVIDIA's revenue and profits experienced explosive growth, fundamentally driving its rise.

Over the past year, NVIDIA's PE ratio has hovered around the same level, currently standing at 36 times, far lower than Cisco's ratio at the time. Given that other companies in the AI field and their manufacturing capabilities are booked until the end of 2025, NVIDIA's profits are unlikely to decline rapidly. Demand in certain areas of the market still seems to surpass supply.

Typically, when stocks are at highs, investors consider it time to take profits. Indeed, that's often the case.

However, when a pullback begins, new buying opportunities may arise.

At what price would you consider buying NVDA on a dip?

🎁Rewards：

• Feel free to share your AVGO & NVDA positions in the comment section to win Tiger Coins! Don't miss out on sharing your tactics, give us a lesson!

• Large or high-win-rate positions also stand a chance to win stock vouchers and official interview invitations! Let's uncover who the guru is!

• If you've achieved profits from other potential stocks we don’t know, kindly share your trading strategies in your post, and remember to include the topic "Winning Trades". Hope you'll be the next one to make it onto the leaderboard~

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