end of year is approaching, i think NVDA, AMD holders got serious to insanea gain last few weeks, mine ranged about 150%-300% now I am thinking how to insure this gain. My sense is that lot of holders of this company's and other fast growing companies' options is going to wait until new year and then sell the gain after new year, since new tax year will beginning. Is it going to be so? IF so, how severe it is going to be? I am thinking there will be some correction but those companies expected to continue grow in 17.
NVDA, AMD traders or other growth traders, are you expecting severe pullback just after new year?
- Thread starter ggelitetrader000
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Hard to say now. Very often after the New Year the situation on the market changes drastically. Don't know why.
I haven't analysed AMD but looking at NVDA chart, they could fall below $80 or $90 again as part of correction (https://www.elitetrader.com/et/threads/nvidia-the-next-great-tech-stock.305398/). But surely after that its price will sky rocket as I don't see any bearish sign in them. I wouldn't use a put option on NVDA - it's not the end of the world yet.
AMD fundamental analysis:
Their PE has been decreasing - looks like they have run out of ideas and investors are not expecting to them to grow in the future.
Debt to equity ratio - their ratio has declined substantially in 2016 BUT
it's because they have issued more shares - which is a bad signal as it suggest equity is their only source of financing.
Both Gross profit and profit margin have been decreasing
return to shareholders - it increased in 2016 - but how??
Anyway the outlook of AMD does not seem positive - yes, it might be a time to set a put option on them
Their PE has been decreasing - looks like they have run out of ideas and investors are not expecting to them to grow in the future.
Debt to equity ratio - their ratio has declined substantially in 2016 BUT
it's because they have issued more shares - which is a bad signal as it suggest equity is their only source of financing.
Both Gross profit and profit margin have been decreasing
return to shareholders - it increased in 2016 - but how??
Anyway the outlook of AMD does not seem positive - yes, it might be a time to set a put option on them
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Nvidia is going to continue to climb. I really doubt there is any correction or major pullback near term. I don't see this stock seeing the 90's ever again. It's going to blast through $110 next week and climb to that GS price target of $129. What I see happening is NVDA is going to $125+ before earnings in February and then it is going to pop higher just like last earnings. 2 billion last quarter, Jen-sun said expect 2.1 for the coming quarter. They are going to beat that. Take a look at a Google chart, that is what this stock is going to do next 1-2-3-5-10 years. Buy and hold and just ride out the bumps along the way. That's my plan.
Yes I think they are technically not sound at all, but sentiment is big in invesment an lot of hope in their near future at least, their zen architected CPU-s going to compute (although there are sign and rumors they 8-core latest CPU will compete for same spot with Intel's 4 core CPU-s, if that is the case there could be a major pullback). Another area of interest is their GPU business seems to be gathering a steam, they just signed an agreement with big companies like Google to supplement their data centers with AMD's GPU-s.
Yes nvidia is in fantastic position but their stock has risen like crazy. right now they are like 40Billion valuation.
Pls support your point with logical analysis rather than merely state its valuation seems crazy. What reference are you using to evaluate their valuation is abnormal
I thought the stock was over priced when I bought more at $62.
If you just want portfolio insurance against a WTC event or major market selloff you can use puts or stops. If you ABSOLUTELY believe the stock is going to pull back into the 80's and then rebound trade on that belief, get some puts, go short, sell your stock, buy it back at $80.
Good Luck,
....growth stocks can appear to be over priced and most are at some point.Growth stocks grow into their valuations.
I discovered NVIDIA because I bought a laptop and on that laptop there are 3 stickers. An Intel, Nvidia and Microsoft. Why can't Nvidia become as large as those two? If you believe Nvidia can be as big as those two hold and stop worrying about this stocks gyrations. This stock will continue to increase in value over the next several years AND it will have it's gyrations but it looks like it will climb on a very steep angle. Think about how many GPU chips are going to be needed to run all the new technology that is emerging. Emerging disruptive technologies. Nvidia is in the sweet spot for ALL of them. Auto, AI, VR, Data Center, IOT, gaming, Deep Learning, eSports etc...just think about what is going to be needed. These technologies require graphics processing power. Tesla just adopted NVDA Drive PX and the stock took off. Elon Musk knows technology and they have adopted Nvidia technology. Who's next? Mercedes, Lexus, BMW, Audi? Nvidia is in the drivers seat as far as auto sector. Self driving technology requires each car to have AI, deep learning mini graphics super computer the Drive PX and it's many successors. Nvidia is the clear leader in many emerging disruptive technologies. If you believe in the story then just relax and be patient and plan on holding this for the next 3-5-10 years and see how the story plays out. With technology stocks buy and wait and see what happens. This is early innings for Nvidia and its stock. This run is just getting started. $100 isn't expensive if it goes to $1000.
Good luck.