Nvidia (#NVDA) weekly uptrend opportunity based On 1 Lot Calculation:
GLOBAL SEMICONDUCTOR INDUSTRY:
- THE SEMICONDUCTOR INDUSTRY HAS GROWN 59% SINCE 2016 TO ~$555b: According to the most recent reports, the semiconductor industry is worth approximately half a trillion dollars. The size of the market in 2016 was ~$349b. Given the current value, the industry has grown 59% since 2016. Semiconductors are critical components in the move to digitization of society, and are used in artificial intelligence, automotive and telecommunications amongst other things.
- MARKET POTENTIAL: THE SEMICONDUCTOR INDUSTRY IS EXPECTED TO GROW 55% BY 2030: Analysts are forecasting, that at the current rate of growth, the semiconductor industry is expected to reach $1trillion in value. Analysts at McKinsey highlight that this represents an industry growth of 6%-8% a year. The computing and data storage segment of this market specifically, is expected to grow 55% until 2030.
GRAPHICS CARD MARKET:
- THE GRAPHICS CARD MARKET IS EXPECTED TO GROW ~30% PER YEAR UNTIL 2028: The global graphics card market is currently worth approximately $1b. According to reports, this market is anticipated to grow to $6.6b, representing a compounded annual growth rate of 30.4% per year between 2022-2028.
- NVIDIA DOMINATES THE GRAPHICS PROCESSING UNIT (GPU) MARKET (81% MARKET SHARE): As of Q4 2021, Nvidia recorded a convincing 81% market share within the GPU market. The GPU market is a significant component in the development of AI. On average, an AI chipset requires at least 25% of it to be composed of GPU chips, which Nvidia makes. As AI becomes more advanced, the demand for GPUs will increase.
NVIDIA
- Nvidia develops and produces three dimensional graphics processors and other related software. Additionally, the company also produces graphics processing units, which is a critical component when developing artificial intelligence and self-driving autonomous vehicles.
- EVENT Q2 EARNINGS 2023 (CONFIRMED AUGUST 24, 2022): Nvidia is expected to report Q2 Revenue of $8.10b, which is a 43% increase Year-on-Year. Net income is anticipated to increase from $1.972b to $3.18b year-on-year, representing an increase of 61.4%.
- EVENT TAIWAIN-CHINA TENSIONS COULD CAUSE SEVER DISRUPTION TO CHIP SUPPLIES: Taiwan is the largest advanced semiconductor producer in the world, accounting for 92% of total global production. Tensions could lead to a possible war and the globe could face severe advanced semiconductor supply problems, which could drive prices higher and translate to higher revenues for Nvidia.
- US SENATE PASSES BILL WORTH $52 BILLION: The move comes after the Biden administration pushed for standalone legislation to boost computer chip production. The bill, also known as the Chips-Plus bill, has been passed by the US senate and is set to be signed by president Joe Biden.
- ANALYSTS OPINIONS: Jefferies has a price target of $370, Wells Fargo target is $250 while JP Morgan targets $285. The Bloomberg Analyst Consensus has an average price target of $232.82.
- STOCK PRICE ACTION: THE STOCK HAS HAD A DOWNWARD CORRECTION OF AROUND 60.00% FROM ITS ALL- TIME HIGH OF $346. The stock has fallen to its lowest rate since June, 2021, to $140.49 (July 5, 2022). Nvidia was last trading around $190, and If a full recovery follows to recent all- time highs, the stock could see an upside of around ~83%.
Nvidia, August 4, 2022
Current Price: 190.00
NVIDIA |
Weekly |
Trend direction |
|
285.00 |
|
250.00 |
|
220.00 |
|
170.00 |
|
160.00 |
|
150.00 |
Example of calculation based on weekly trend direction for 1 Lot1
NVIDIA |
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Pivot Points |
||||||
Profit or loss in $ |
95,000.00 |
60,000.00 |
30,000.00 |
-20,000.00 |
-30,000.00 |
-40,000.00 |
Profit or loss in €2 |
93,540.76 |
59,078.38 |
29,539.19 |
-19,692.79 |
-29,539.19 |
-39,385.58 |
Profit or loss in £2 |
79,329.29 |
50,102.71 |
25,051.36 |
-16,700.90 |
-25,051.36 |
-33,401.81 |
Profit or loss in C$2 |
124,195.40 |
78,439.20 |
39,219.60 |
-26,146.40 |
-39,219.60 |
-52,292.80 |
- 1.00 lot is equivalent of 1 000 units
- Calculations for exchange rate used as of 11:50 (GMT+1) 04/08/2022
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