Nvidia: The King Of AI And The Sword Of Damocles

Summary:

  • Nvidia Corporation has had a blistering rally in 2023 and has quickly become a battleground stock.
  • We believe too much emphasis is put on short-term factors such as near-term earnings and the threat of competition.
  • Nvidia is currently the king of AI hardware and software, which naturally makes them a target.
  • The future of the company rests solely on their ability to continue to innovate and improve their value proposition.
  • Despite the risks, we believe the potential reward makes Nvidia Corporation stock a buy at these levels.

Chipmaker NVIDIA"s Valuation Passes 1 Trillion In Market Cap

Justin Sullivan

Thesis

Nvidia Corporation (NASDAQ:NVDA) is in no uncertain terms a battleground stock. While the bulls and the bears both have valid points, for this article we would like to focus on a more philosophical viewpoint regarding the sustainability


Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

UFD Capital Value Fund, LP has long exposure to NVDA. UFD Capital, LLC manages a hedge fund and does not provide investment advice. Nothing contained in this article is investment advice or financial advice of any kind and investors should do their own research and consult a professional before making financial decisions. Nothing contained in this article should be interpreted as a solicitation to buy or an offer to sell securities.

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