Nvidia

Nvidia (#NVDA) weekly special report based On 1 Lot Calculation:

GLOBAL SEMICONDUCTOR INDUSTRY:

• THE SEMICONDUCTOR INDUSTRY IS CURRENTLY WORTH ~$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 BECOME A $1T DOLLAR MARKET 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: 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: 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.

The Company -

● 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.

● DEUTSCHE BANK AND NVIDIA SEAL DEAL TO DEVELOP AI IN FINANCIAL SERVICES UNTIL 2025: Nvidia and Deutsche Bank reached a deal for Nvidia to develop AI and accelerate adoption of AI into financial services. According to McKinsey, AI could deliver up to $1 trillion of value per year to global banking. The deal, according to Nvidia, should be the source of billions of dollars in revenue over the span of the deal.

● NVIDIA IS DEVELOPING SUBSCRIPTION SOFTWARE FOR AUTONOMOUS DRIVING, WHICH COULD BE WORTH $300B: According to Nvidia, Mercedes Benz and Jaguar Land Rover will roll out autonomous cars in 2024 with Nvidia computers and its autonomous driving software. According to Nvidia CFO Kress, software revenue from the auto industry is expected to bring in $300b to Nvidia.

● ANALYSTS OPINIONS: JP Morgan has a price target of $220, Wells Fargo target is $250 while CitiBank targets $210. The Bloomberg Analyst Consensus has an average price target of $196.97.

● STOCK PRICE ACTION: THE STOCK HAS HAD A DOWNWARD CORRECTION OF AROUND 68.76% FROM IT’S ALL- TIME HIGH OF $346. The stock has fallen to its lowest rate since June, 2021, to $108.09 (October 13, 2022). Nvidia was last trading around $161, and If a full recovery follows recent all- time highs, the stock could see an upside of around ~115%. However, it could go lower.

• Nvidia, December 8, 2022
  Current Price: 161.00

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 11:45(GMT) 8/12/2022

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