Nvidia (#NVDA) Weekly Special Report based on 1 Lot Calculation:
THE COMPANY:
- NVIDIA develops and produces three-dimensional graphics processors and other related software. The company also produces graphics processing units, which is a critical component when developing artificial intelligence and self-driving autonomous vehicles.
- NVIDIA’S LATEST PRODUCT PIPELINE FOR THE AI CHIP SECTOR: Nvidia’s CEO said the company plans to release a new family of AI chips yearly, accelerating its prior release schedule of roughly every two years. The current pipeline includes the Blackwell chip, set for release in 2024; The Blackwell Ultra, set for 2025; The Rubin chip, set for 2026 and the Rubin Ultra, set for 2027.
FINANCIALS:
- Q2 2024 EARNINGS RESULTS (AUGUST 28). According to CNBC, NVIDIA reported a 122% increase in revenue for Q2 compared with the same period last year. The company reported a record high quarterly revenue of 30.04 billion dollars and a record high net income of 16.6 billion dollars. In addition, the company said it expects a revenue figure of 32.5 billion dollars in Q3, which would be 80% up from the same period last year.
COMPANY EVENTS:
- EVENT (OCTOBER 7 - 9, WASHINGTON D.C.): NVIDIA A.I. SUMMIT. The company is expected to present its new A.I. technology and the use of its newest A.I. chip from the Blackwell generation.
- EVENT (OCTOBER 23 - 25, INDIA): NVIDIA A.I. SUMMIT and SPEECH FROM CEO JENSEN HUANG. According to the theprint.in, Nvidia is set to host its flagship AI conference, the Nvidia AI Summit, from October 23-25, 2024, in Mumbai. This event is one of three global summits this year, alongside those in Washington, D.C., and Japan, and aims to be a convergence of minds, gathering top executives, AI experts, developers, innovators, and key technology decision-makers to explore advancements in AI.
OTHER EVENTS:
- FEDERAL RESERVE INTEREST RATE DECISION (WEDNESDAY, SEPTEMBER 18 AT 19:00 GMT+1). The most recent economic turmoil in the US raised chances that the Fed could cut interest rates by 50 basis points to 5.00% from the current 5.50% in September. Whether the cut is 50 basis points or 25 basis points, it would still be the first since 2020. All in all, the market expected the Fed could reduce interest rates from the current 5.50% (the highest in over 20 years) to 4.50% by the end of the year.
OTHER NEWS:
- USA IS CLOSER TO ALLOWING NVIDIA TO EXPORT CHIPS TO SAUDI ARABIA. According to Reuters, Saudi Arabia is working close to meet the security requirements of the U.S. after shipments of Nvidia’s chips were limited earlier in 2024 over the country’s ties with China. Saudi Arabia is looking to receive Nvidia’s most advanced H200 chips to develop its own large-scale AI models.
- NVIDIA CEO JENSEN HUANG SAYS DEMAND FOR NVIDIA CHIPS IS “INCREDIBLE”. According to Reuters, Huang said at Goldman Sachs' Communacopia + Technology Conference that “everything is sold out,” as customers clamor for Nvidia infrastructure to support artificial intelligence (AI). Demand for Nvidia’s high-tech products is “so great” its customers are “tense”.
- GOLDMAN SACHS: According to Goldman Sachs, investors could have a possibility to “buy the dip” and trade with a rebound in equity prices which could see stock markets hit new highs after the U.S. elections in November.
- BANK OF AMERICA: NVIDIA IS ONE OF THE TOP “REBOUND” STOCK PICKS. Bank of America analyst Vivek Arya noted Nvidia is one of the firm's top "rebound" picks amid what he expects to be a comeback for semiconductors to end 2024.
PRICE ACTION:
- NVIDIA HIT AN ALL TIME HIGH OF $140.49 (June 20, 2024). The price of stock trades currently around $116 and if it follows a full recovery to its most recent all-time high of $140.49, this could provide an upside potential of around 21%. However, the stock price could further decline.
- ANALYST OPINION: Wells Fargo forecasts $165, Morgan Stanley forecasts $150, Citigroup forecasts $150, Rosenblatt forecasts $200, JPMorgan forecasts $155.
Nvidia, September 17, 2024
Current Price: 116
|
NVIDIA |
Weekly |
|
Trend direction |
|
|
200 |
|
|
165 |
|
|
130 |
|
|
105 |
|
|
100 |
|
|
95 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Profit or loss in $ |
84,000 |
49,000 |
14,000 |
-11,000 |
-16,000 |
-21,000 |
|
Profit or loss in €² |
75,413 |
43,991 |
12,569 |
-9,875 |
-14,364 |
-18,853 |
|
Profit or loss in £² |
63,522 |
37,054 |
10,587 |
-8,318 |
-12,099 |
-15,880 |
|
Profit or loss in C$² |
114,072 |
66,542 |
19,012 |
-14,938 |
-21,728 |
-28,518 |
- 1.00 lot is equivalent of 1000 units
- Calculations for exchange rate used as of 10:20 (GMT+1) 17/09/2024
There is a possibility to use Stop-Loss and Take-Profit.
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
- Trailing stop technique could protect the profit.