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 digitisation of society, and are used in artificial intelligence, automotives 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.
● EVENT Q4 2023 EARNINGS (FEBRUARY 22, CONFIRMED: AFTERMARKET): Nvidia is expected to report a Q4 revenue of $6.01B and an EPS of $0.81. Nvidia has beaten both revenue and EPS estimations 7 out of the last 8 times.
● MERCEDES-BENZ TO EMPLOY NVIDIA’S OMNIVERSE SOFTWARE TO STREAMLINE MANUFACTURING: Mercedes-Benz has reportedly struck a deal with Nvidia at the CES tech conference, outlining their intent to use Nvidia’s omniverse software to design manufacturing facilities to improve production efficiency. The deal will deliver an additional revenue stream to the company.
● NVIDIA AND FOXCONN ANNOUNCE NEW SELF-DRIVING VEHICLE PARTNERSHIP AT CES 2023: Nvidia and Taiwanese technology company, Foxconn have agreed a deal to produce autonomous driving software. The companies suggest that the software can achieve 254 Trillion operations per second, making it one of the most advanced softwares in the market.
● ONE OF THE LARGEST INDEPENDENT INVESTMENT BANKS IN THE WORLD, NEEDHAM AND CO, LIST NVIDIA AS TOP PICK FOR 2023: Needham and Co, one of the largest independent investment banks, has listed Nvidia as its top pick for 2023, upgrading the price target from $200 to $230.
● 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 $199.61.
● 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 $150, and If a full recovery follows recent all- time highs, the stock could see an upside of around ~130%. However, it could go lower.
- Nvidia, January 09, 2023
Current Price: 150.00
NVIDIA |
Weekly |
Trend direction |
|
200.00 |
|
185.00 |
|
170.00 |
|
135.00 |
|
120.00 |
|
110.00 |
Example of calculation based on weekly trend direction for 1 Lot1
NVIDIA |
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Pivot Points |
||||||
Profit or loss in $ |
50,000.00 |
35,000.00 |
20,000.00 |
-15,000.00 |
-30,000.00 |
-40,000.00 |
Profit or loss in €2 |
46,839.50 |
32,787.65 |
18,735.80 |
-14,051.85 |
-28,103.70 |
-37,471.60 |
Profit or loss in £2 |
41,230.31 |
28,861.22 |
16,492.13 |
-12,369.09 |
-24,738.19 |
-32,984.25 |
Profit or loss in C$2 |
68,313.00 |
47,819.10 |
27,325.20 |
-20,493.90 |
-40,987.80 |
-54,650.40 |
- 1.00 lot is equivalent of 1 000 units
- Calculations for exchange rate used as of 11:25(GMT) 09/01/2023
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