Nvidia (#NVDA) weekly special report based On 1 Lot Calculation:
ARTIFICAL INTELLIGENCE
- ARTIFICAL INTELLIGENCE (AI): CHATGPT SPARKS AI COMPETITION AMONGST MAJOR TECH FIRMS, FUELLING DEMAND FOR NVIDIA AI PROCESSING PRODUCTS: According to reports, Microsoft, Alphabet and Meta are set to invest $90B into AI technology development. Nvidia holds around 86% of the AI Processing market as of Q4 22. OpenAi, the company that invented ChatGPT, used Nvidia GPU chips to create it.
- NVIDIA IN AI WORLD: Nvidia’s A100 GPU chip is one of the most critical tools in artificial intelligence with Nvidia the only company that produces a chip of this kind. Nvidia takes up 95% of the graphics processors used for machine learning.
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.
EVENTS AND ANALYSIS
- EVENT: Q2 2023 EARNINGS REPORT (CONFIRMED August 23, 2023 AFTERMARKET): Nvidia is expected to report its calendar Q2 2023 earnings report. Revenue is expected to come in about 53.3% higher quarter-on-quarter. Earnings are forecasted to come in about 88.34% higher quarter-on-quarter. Nvidia has beaten both revenue and earnings expectations 7 out of the last 8 reports.
- NVIDIA H100 GRAPHICS CARD SEES BOOMING DEMAND, WITH TOTAL DEMAND EQUATING TO $15 BILLION, AS SHORTAGE OF GRAPHICS CHIPS EXPECTED UNTIL THE END OF 2024: Nvidia’s H100 graphics card, a key component in artificial intelligence (AI) development has seen a strong demand spike as chip shortages continue amidst the AI arms race. The total value of demand for Nvidia’s H100 chip could push the price even further beyond the current $15B market value.
- NVIDIA EXPECTED TO BECOME MAJOR SHAREHOLDER IN LARGE CHIP PRODUCER "ARM". ARM IS EXPECTED TO GO PUBLIC (IPO) IN SEPTEMBER: According to reports, Nvidia has been nominated as an anchor investor for the company’s initial public offering (IPO). If the IPO of ARM is successful, Nvidia could have a substantial share in a company that produces CPU chips for 99% of the world's smartphones. This could give Nvidia a strong innovative edge and help the company acquire intellectual knowledge which could help it challenge CPU giant Intel.
PRICE ACTION
- ANALYSTS OPINIONS: HSBC has a price target of $780. KeyBanc is targeting $620. Citi has a price target of $520. Morgan Stanley targets $500. UBS forecasts $540. Barclays expects a price of $570.
- STOCK PRICE POTENTIAL: NVIDIA was last trading at $470, with some banks targeting $780, indicating a potential upside of about 66% could these forecasts materialize. However, the price could decline further.
Nvidia, August 22, 2023
Current Price: 470
|
NVIDIA |
Weekly |
|
Trend direction |
|
|
780 |
|
|
600 |
|
|
520 |
|
|
420 |
|
|
410 |
|
|
400 |
Example of calculation based on weekly trend direction for 1 Lot1
|
NVIDIA |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
310,000 |
130,000 |
50,000 |
-50,000 |
-60,000 |
-70,000 |
|
Profit or loss in €2 |
284,104 |
119,140 |
45,823 |
-45,823 |
-54,988 |
-64,152 |
|
Profit or loss in £2 |
242,506 |
101,696 |
39,114 |
-39,114 |
-46,937 |
-54,759 |
|
Profit or loss in C$2 |
419,477 |
175,910 |
67,658 |
-67,658 |
-81,189 |
-94,721 |
- 1.00 lot is equivalent of 1 000 units
- Calculations for exchange rate used as of 09:30(GMT+1) 22/08/2023
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient Manager regarding their use.
- You may wish to consider closing your position in profit, even if it is lower than suggested one
- Trailing stop technique can protect the profit – Ask your Senior Account ManagerClient Manager for more detail