Nvidia (#NVDA) weekly special report based On 1 Lot Calculation:
- 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.
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.
Events and Analysis:
- EVENT: ARM IPO (SEPTEMBER 14, 2023 CONFIRMED), NVIDIA CONSIDERED A KEY INVESTOR: 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 share ownership in a company that produces CPU chips for 99% of the world's smartphones.
- COMPANIES OREDERING CHIPS FROM NVIDIA INCLUDE GOOGLE, META, MICROSOFT, TESLA, DELL, BAIDU, ALIBABA, TENCENT AND BYTEDANCE: According to Saxobank, capital expenditure of the tech giants has exceeded $40B, most of it assumed to be allocated toward artificial intelligence.
- NVIDIA WORKING ON EXPANDING INTO INDIA, SET TO DOUBLE ITS WORKFORCE IN THE COUNTRY WHILE HELPING INDIA BUILD NEW AI INFRASTRUCTURE: According to reports, Nvidia is set to expand into India after CEO Jensen Huang had a meeting with India’s prime minister Modi. The company will be building AI infrastructure in, which will be using Nvidia chips in its data centers. The expansion could facilitate revenue and earnings growth.
- 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.
Price Action -
- ANALYSTS OPINIONS: HSBC has a price target of $800. BNP is targeting $745. Barclays is targeting $650. JP Morgan is targeting $600. The Bloomberg Consensus target is $645.95.
- STOCK PRICE POTENTIAL: NVIDIA was last trading at $445, with some banks targeting $600, indicating a potential upside of about 35% could these forecasts materialize. However, the price could decline further.
Nvidia, September 13, 2023
Current Price:445
|
NVIDIA |
Weekly |
|
Trend direction |
|
|
700.00 |
|
|
600.00 |
|
|
475.00 |
|
|
425.00 |
|
|
415.00 |
|
|
400.00 |
Example of calculation based on weekly trend direction for 1 Lot1
|
NVIDIA |
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|
Pivot Points |
||||||
|
Profit or loss in $ |
255,000.00 |
155,000.00 |
30,000.00 |
-20,000.00 |
-30,000.00 |
-45,000.00 |
|
Profit or loss in €2 |
237,546.29 |
144,390.88 |
27,946.62 |
-18,631.08 |
-27,946.62 |
-41,919.93 |
|
Profit or loss in £2 |
204,596.60 |
124,362.64 |
24,070.19 |
-16,046.79 |
-24,070.19 |
-36,105.28 |
|
Profit or loss in C$2 |
345,954.68 |
210,286.18 |
40,700.55 |
-27,133.70 |
-40,700.55 |
-61,050.83 |
- 1.00 lot is equivalent of 1 000 units
- Calculations for exchange rate used as of 11:45(GMT+1) 13/09/2023
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