As a big fan of NVIDIA (NVDA), the leading driver of AI technologies and data-driven scientific discovery, I try to write substantive and meaningful reports about the company every few weeks.
I guided my TAZR Trader portfolio members to buy NVDA shares near the October lows of $120 and we proudly enjoy gains of over 250% hence.
But more important than timing buys and sells which involve both luck and conviction in a UFC octagon cage-match, is my persistent research into the AI phenomena and what it means for a technological civilization expanding exponentially.
My NVIDIA-AI Research
In March, I published a special report for Zacks Confidential members titled ChatGPT: Time to Become an AI Conversationalist — when investors still had a great opportunity to buy NVDA shares near $250.
Then in late June, I did a deep dive to explain the huge 40%+ jump in sales growth projections for this year and next after the company’s announcement in May of the new Grace Hopper GPU chip-sets that giant tech customers like Google, Microsoft (MSFT), and Meta (META) were lining up for…
My reasoning to continue to buy NVDA shares at supposedly “nose-bleed 20X sales valuations” (not our first rodeo here) was that the AI fuse had been lit and if those 3 giants were buying massive quantities of DGX-CUDA stacks — at $100K to $150K each — then the entire Fortune 1000 was lining up too, so as not to be left behind in the Generative AI arms race of super-intelligent data systems and models.
Then on July 10, I did a special presentation for our exclusive Zacks Ultimate Members where I I explained the AI revolution that so few understood, especially in light of typical headlines like…
“The NVDA-AI Bubble Makes the Stock Trade for 200 Times Earnings!”
These types of “rear-view” mirror headlines were, of course, ridiculous and so on the following day, I made part of my presentation public in the weekly Zacks Top Stock Picks video which is still available.
You had about one more day to buy NVDA shares at $425 before the big beat-and-raise quarter I expected on August 23. Alas, NVDA shares launched the next day toward $475!
If you want access to the deeper dives from March on ChatGPT or the June “$2 Trillion” path, just email Ultimate@Zacks.com and tell ’em Cooker sent you.
Where Goes NVDA Now Before Earnings?
So if I told clients and investors to definitely buy NVDA at $425 before earnings — now less than 2 weeks away — how do I feel now?
Well, with the pullback to $450, my signals are full green-lit for the coming beat-and-raise to push shares toward all-time highs of $500.
And since Wall Street analyst estimates just pushed next year’s topline revenue another $2 billion higher to $57B in the past few weeks — representing 33.7% growth — I think they are still catching up to this story, just like when I said they were behind in December and March.
Meanwhile, EPS projections for next year just moved 5.7% higher in the past few weeks from $10.19 to $10.77, representing 38.3% growth.
Even expert spreadsheet jockeys who focus on this company for a living don’t yet fully understand the scale of NVIDIA AI architectures that will create tremendous demand and add trillions in economic value for every sector and industry. They finally, yet timidly, have stuck their necks out this year with $500 price targets.
If you read and watch the content deep dives I’ve linked above, you will understand what they are missing.
And then you will see why you want to buy NVDA, and its satellites like Cadence Design Systems (CDNS), in the next 2 weeks. Additionally, Advanced Micro Devices (AMD) just confirmed their #2 position behind NVDA in GPU “massively parallel architectures” for AI deployment.
If you can’t stomach NVDA at 18-20X sales, buy AMD at 7-8X. It trades at a big discount for several reasons, but quality engineering, execution, demand, and talent from Lisa Su isn’t one of them.
— Kevin Cook
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Source: Zacks