Alphabet Diamond HolderClearly not bullish on NVDA in the medium term.
The reason is simple. The long positions in the Magnificent Seven are still very crowded. Even if we set aside the currently weak fundamentals (inflation, interest rate hikes), there is no extra capital in the market to push NVIDIA's stock price higher anymore. After all, this is a behemoth worth over four trillion.
However, no matter what, I am a firm believer in the AI narrative. It is indisputable that NVIDIA's EPS will exceed 10 in two years!
If NVIDIA has a chance to fall below 150 this year, I think that would be a good buying opportunity.
If it can break below 140, then I think it's time to bravely go for leap calls. As long as the Fed doesn't actually hike rates to burst the AI bubble, then giving NVIDIA a P/E ratio of 20 based on an EPS of 12 in 2028, resulting in a price of 240, really isn't excessive.
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