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: EARNINGS Q3 2023 NOVEMBER 21, 2023 (CONFIRMED AFTERMARKET): Nvidia will report Q3 earnings, with revenue anticipated to grow 18% quarter over quarter. If Nvidia achieved the analyst forecasted Net income, it would be an increase 31% quarter on quarter.
- GOLDMAN SACHS ADDED NVIDIA TO ITS “AMERICAS CONVICTION LIST” AND MAINTAINING PRICE TARGET OF $605: Investment Bank Goldman Sachs has upgraded Nvidia’s outlook, as the company continues to have robust demand for its chips.
- 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.
Price Action -
- ANALYSTS OPINIONS: HSBC has a price target of $800. BNP is targeting $745. Barclays is targeting $650. Morgan Stanley is targeting $630. The Bloomberg Consensus target is $645.95.
- STOCK PRICE POTENTIAL: NVIDIA was last trading at $445, with the Bloomberg consensus targeting $645, indicating a potential upside of about 45% could these forecasts materialize. However, the price could decline further.
Nvidia, October 3, 2023
Current Price: 445
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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
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NVIDIA |
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Pivot Points |
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|
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 09:30(GMT+1) 03/10/2023
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