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 (EXPECTED: NOVEMBER 21, AFTERMARKET): Q3 EARNINGS REPORT TO SHOW RECORD HIGH QUARTERLY REVENUE AND NET INCOME FIGURES. The company is expected to reach 33.1 billion dollars in revenue for Q3 (new record high), accompanied by a net income of 18.446 billion dollars (new record high). This is compared to 18.12 billion dollars in revenue for the same period last year, which was accompanied by a net income of 9.39 billion dollars. This would mark a year over year increase of 82.67% in revenue and 96.44% in net income.
OTHER NEWS:
- BREAKING: BLACKWELL A.I. CHIP SOLD OUT FOR THE NEXT 12 MONTHS. According to Morgan Stanley, Nvidia will deliver 450,000 Blackwell A.I. chips in Q4 of 2024 (each would cost around $46,000), which could bring more than 10 billion dollars in revenue only in the fourth quarter of 2024.
- BREAKING: NVIDIA CEO JENSEN HUANG IS DONE SELLING NVIDIA SHARES. Nvidia CEO Jensen Huang is done selling the chipmaker’s stock for the time being, cashing in more than $700 million under a prearranged plan. The 61-year-old executive in mid-March adopted a trading plan for the sale of up to six million Nvidia shares by the end of the first quarter of 2025. Huang has hit that threshold months ahead of schedule after a flurry of transactions between June 13 and September 12.
- 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”.
OTHER EVENTS:
- FEDERAL RESERVE INTEREST RATE DECISION (THURSDAY, NOVEMBER 7 AT 19:00 GMT). As of October 30, the market sees high chances for 25 basis points interest rates cut. This could bring current rates of 5.00% down to 4.75%.
PRICE ACTION:
- NVIDIA HIT AN ALL TIME HIGH OF $144.17 (October 22, 2024).
- ANALYST OPINION: Wells Fargo forecasts $165, Morgan Stanley forecasts $150, Citigroup forecasts $150, Rosenblatt forecasts $200, JPMorgan forecasts $155.
Nvidia, October 30, 2024
Current Price: 139
|
NVIDIA |
Weekly |
|
Trend direction |
|
|
200 |
|
|
180 |
|
|
155 |
|
|
125 |
|
|
120 |
|
|
115 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Profit or loss in $ |
61,000 |
41,000 |
16,000 |
-14,000 |
-19,000 |
-24,000 |
|
Profit or loss in €² |
56,312 |
37,849 |
14,770 |
-12,924 |
-17,540 |
-22,156 |
|
Profit or loss in £² |
47,018 |
31,602 |
12,333 |
-10,791 |
-14,645 |
-18,499 |
|
Profit or loss in C$² |
84,884 |
57,053 |
22,265 |
-19,482 |
-26,439 |
-33,397 |
- 1.00 lot is equivalent of 1000 units
- Calculations for exchange rate used as of 14:40 (GMT+1) 30/10/2024
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.