Why I'm Not Chasing NVIDIA Up Here, But Still Like It

One thing is crystal clear to me, NVIDIA has bounced incredibly well off its 2022 lows, to the tune of nearly 150%! What a trade...

I missed it.

In addition, check out the double bottom that I marked on the chart. In hindsight, it looks so obvious. It's important to use these long-term charts to learn and get better. Had you zoomed out, you may have seen this low from a mile away.

Next time...

But now it appears that NVIDIA is being talked about everywhere as it marches forward. This post is designed to explain why I think NVIDIA has too much resistance ahead - don't chase! But also why the market sees its potential.

Let's get to it:

Nevertheless, NVIDIA, thanks to the speed of its recent bounce, is now the 7th largest company on Earth. Will it pass Buffett and Berkshire Hathaway next?

The list looks like this:

Apple - $2.6 trillion
Microsoft - $2.1 trillion
Saudi Aramco - $2.1 trillion
Alphabet (Google) - $1.3 trillion
Amazon - $1.1 trillion
Berkshire Hathaway - $715.4 billion
NVIDIA - $685.5 billion
Tesla - $576.4 billion
Meta (Facebook) - $555.7 billion
Johnson & Johnson - $506.3 billion

As AI increases, machine learning, and their eventual integration into machines, NVIDIA remains poised to lead the way. And that's where I personally think the long-term story remains in tact. I am not looking at NVIDIA for a trade right now - the risk/reward makes little sense. But, long-term, if NVIDIA suffers another correction, I'll be ready.

Why?

The other day I joked that while ChatGPT and other AI online tools are cool, we have yet to see this integrated with anything physical. But that is not far away - a fridge that learns your habits about what you eat so it can place orders automatically or set your fridge to the perfect temperature. Or a lawn mower that learns to master your lawn after each attempted cut, turning your lawn into a flawless putting green that your neighbors marvel at. But this also where things can get a little crazy… like if the lawn mower starts to think you’re the putting green! 😝

I hope you enjoyed this free flowing chat and a few notes that I added to the chart.

Let me know what you think