Nvidia

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 may 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 SEVERE 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 Citi Bank targets $285. The Bloomberg Analyst Consensus has an average price target of $225.88.
• 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 $180, and If a full recovery follows to recent all- time highs, the stock could see an upside of around ~92%.

Nvidia, August 11, 2022
Current Price: 180.00

Example of calculation based on weekly trend direction for 1 Lot¹

1. 1.00 lot is equivalent of 1 000 units
2. Calculations for exchange rate used as of 09:20 (GMT+1) 11/08/2022

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